Comment by markisus

Can you explain what asymmetric means?

Are you saying that this forced rebalancing will be large enough to cause a large price drop on other stocks?

Let’s just think about any stock in particular, eg stock ABC. If I am an active investor, I have an opinion on ABC and its net present value. When ABC dips below that value, I buy. Wouldn’t I prepare some cash in anticipation of this large ABC sell off at discounted prices? And thus the ABC price would not move from its fair price.