If true then I’m sure that’s a factor. I’m saying that monopolies and cartels in many industries has had the result of limiting the choices managed funds have in equities, and they are looking elsewhere. If what you’re saying is true then it might not just be a matter of total dollars, it might also be because funds (probably led by newer funds) need to justify themselves and that creates pressure to be creative or look in weird places for investments.
I’m stealing this from the Hidden Forces podcast, but if we take one industry, let’s say automobile for familiarity, and posit that electric car demand is a huge disrupter that allows new entrants an easier path to market entry than 10 years ago (when they would be competing instead with firms that have up to 100 year head starts), then we should see more new firms than we are. Instead it’s mostly just Tesla and a smattering of rival firms that are far smaller.
if you’re managing a fund that doesn’t give you a lot of options for that industry, and telling your investors that you put their money in Tesla is something they are perfectly capable of doing on their own.
I’m sure there’s all kinds of other reasons (potential for AI disruption in services, outsourcing, direct state subsidies in foreign markets) that also make equities seem riskier than in previous business cycles.