What will happen to the market if everyone is passively invested? Why do markets need active managers?

Imagine a $1 trillion equity market consistently moving towards passive investing. It reaches the point where 90% ($900 billion) of the investments are passively managed and only 10% ($100 billion) are actively managed. Furthermore, one day, all the actively invested money is withdrawn and instead invested in passive funds. What will happen if everyone decided Read more about What will happen to the market if everyone is passively invested? Why do markets need active managers?[…]