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Index funds usually halved in value during the financial crisis. They still have exposure to whole-market crises, even if single sector or company crises don't
by tormeh 8y ago
Index funds usually halved in value during the financial crisis. They still have exposure to whole-market crises, even if single sector or company crises don't touch them much.
- kokey 8y agoI was being sarcastic there. Everyone also knew for a fact that property is a very safe investment and things backed by property is a very safe investment. Before the stock market took a knock over the past two years, people were talking the same way about index funds as they were talking about property. The same thing with bitcoin really.
- tormeh 8y agoI have a bit less faith in real estate than you do. My impression is that, from a regulatory point of view, real estate is regarded as a safe investment because that results in cheap mortgages, and cheap mortgages are popular among voters. It's not that real estate is safe per se. Index funds usually recover to before-crisis levels in about 5 years, so they're not terribly risky in that sense. The Bitcoin believers were always lunatics. That people will believe in stupid shit is nothing new.