Index Funds and ETF's - stay close to the Exit

Index Funds and ETF's may be a wonderful choice in the eyes of many investors - individuals and institutions alike. But one aspect gets not mentioned often enough: apart from the risk that you will be fully exposed to any market decline (how good are your market timing skills?) the relentless flood of money into these instruments/strategies also pushes the already expensive component stocks to an ever higher multiple. It creates a sort of Pentium mobile or self-full filling mechanism. The higher a stock like, say, Amazon climbs, the more money is allocated to this stock - as long as people want to allocate money to the asset class, the stock market in this case.