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Isn’t the problem that all of our mutual funds just keep buying Boeing stock no matter what bad things happen?
by JohnJamesRambo 7y ago
Isn’t the problem that all of our mutual funds just keep buying Boeing stock no matter what bad things happen?
- kyrieeschaton 7y agoMost index funds are in some matter market weighted. So when the price crashes, they buy less, and vice versa. You can see how this could have some odd effects, but the thesis is that heavily leveraged smart money washes it out.