My second suggestion is that the authors be more careful about asserting that information technology has greatly expanded the presence of uninformed investors in the equity market. Based on my reading of the available data, this occurrence seems far from clear, and I would like to spend a couple minutes indicating why.
Let’s begin by looking at the aggregate data on household equity holdings from the Federal Reserve’s 1 flow of funds accounts. These data include direct holdings by households, along with the various forms of indirect equity holding that involve professional management (such as investing through mutual funds).