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I did read it. This statement is false: "but it does cause problems with being over concentrated in stocks which will cause more losses when the down turn happe
by tanderson92 9y ago
I did read it. This statement is false: "but it does cause problems with being over concentrated in stocks which will cause more losses when the down turn happens."
Total market index funds do not overweight or overconcentrate stocks. As I correctly stated, the weight of the stock in the index and in the passive fund are set by the consensus of all active traders.
- walshemj 9y agoSomeone who is blindly putting all there investments into an index is not an active trader - its when those investors panic and pull investments that the problem will occur - bit of a problem for those with FANG options as well.
- tanderson92 9y agoSo you agree that total market index funds do not overconcentrate stocks relative the market consensus? You stated the opposite in your initial post.
- walshemj 9y agoThe market consensus is wrong in this case - this is the obvious inference.