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This is basically what happens with company 401ks. In the reality most of us inhabit, a 401k is a type of company-sponsored retirement account. The accounts a
by patio11 11y ago
This is basically what happens with company 401ks.
In the reality most of us inhabit, a 401k is a type of company-sponsored retirement account. The accounts are allowed to invest in a variety of securities, most commonly in one of a limited selection of mutual funds. There is no circumstance under which 401k contributions materially move the market.
If I sound mildly put out in this comment, it is because HN comments about the stock market often make very confident claims which bear only the most tenuous connection to reality. It's as if someone on a Wall Street message board had asked "Why is Chrome faster than Internet Explorer?" and received the answer "Because it is written in Unicode."
And outside the scope of this particular comment, often times responses like "Chrome is not, in fact, written in Unicode. Unicode is an imprecise name for part of a family of methods of encoding text in various human languages, not a programming language. A substantial part of Chrome, including most of the rendering engine, UI layer, and network stack is written in C++; Chrome also makes heavy use of other languages internally. Returning to the question of why Chrome is fast: this is less about language choice and more because substantial effort has been taken to ensure that Chrome is fast. 'Fast' is a complicated topic in browsers. In terms of user-visible performance, one thing which makes browsers seem fast is the Javascript runtime. Chrome uses V-8, a run-time built specifically for Chrome at the cost of hundreds of millions of dollars, which is optimized for speed." are met with "Sure that's what you would say IF YOU WERE A GOOGLE SHILL."
- FeepingCreature 11y agoAlso, Chrome is about three times slower than Firefox in asm.js performance. /missing-the-point
- droopybuns 11y agoI guess I could have explained that better. What I was trying to express is that money managers who are working with very large sums of money have difficulty getting out of very large positions. Some companies have 401ks plans that are working with very large sums of money. This problem doesn't apply to all 401ks. This wasn't the best example. Um... not sure what to do with your comments on the shill ecosystem.
- harryh 11y agoWhat is a circumstance in which the assets under management for a company 401k would need to get out of a very large position?
- droopybuns 11y agoThe fund manager decides to invest elsewhere? Here is Fidelity's Contrafund summary: https://fundresearch.fidelity.com/mutual-funds/composition/316071109 https://fundresearch.fidelity.com/mutual-funds/composition/3... FACEBOOK INC A BERKSHIRE HATHAWAY INC CL A WELLS FARGO & CO ALPHABET INC CL A APPLE INC AMAZON.COM INC ALPHABET INC CL C VISA INC CL A STARBUCKS CORP NIKE INC CL B % of Total Portfolio 31.30% I guess a worst case scenario is one of the core assets went out of business. The asset portfolio doesn't stay static- if you look at the site above, it says that these are the assets as of a specific date.