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> I don't believe that institutional investors don't look at financials. Many don't, like indexed funds. They just try and keep their shares ratios inline with
by flukus 8y ago
> I don't believe that institutional investors don't look at financials.
Many don't, like indexed funds. They just try and keep their shares ratios inline with the market and rely on it always going up overall.
- phamilton 8y agoDo index funds drive the price at all though? I would expect them to be net neutral. If the stock goes down they sell, if it goes up, they buy.
- flukus 8y agoYes they're mostly neutral. But when the stock goes down that's still real people losing real money from their pension funds to what are essentially con artists. The saving grace here is as nradov said, they won't buy into IPO's.
- nradov 8y agoVery few index funds purchase IPO shares. Companies that just IPO'd aren't listed in indexes; it takes a while for them to be added. Then the index funds buy on the secondary market.