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The whole point of “index funds” is to allow Americans to retire. Maybe provide an alternative where the average American doesn’t need to be an active stock ma
by supercanuck 5y ago
The whole point of “index funds” is to allow Americans to retire.
Maybe provide an alternative where the average American doesn’t need to be an active stock manager or get pilfered by a hedge fund, and maybe we’ll see something more akin to a market that allocates capital efficiently
- shellfishgene 5y agoIn Germany most banks now charge "negative interest" on account balances (usually around 0,5% for >100k). This now makes the Germans most popular (non-)investment of keeping money in savings accounts even more nonsensical. The most common investment advice here (and everywhere else) now is to buy index funds/ETFs (apart from buying a house). I know almost nothing about investing, but doing something that essentially everybody else is also doing with their money does not sound like it will necessarily end well. It just makes me suspicious somehow, with nothing to back that up but a nervous feeling.
- CarelessExpert 5y ago> It just makes me suspicious somehow, with nothing to back that up but a nervous feeling. Sounds like a good reason to learn about investing! Picking up there basics of passive/couch potato investing, including the theory behind the strategy, is pretty easy assuming you have some basic financial literacy and math skills. There's nothing magical about passive investing. You're literally just investing in the entire economy by buying a little bit of everything. If that's stops working it's because something deep and fundamental in the economy or stock markets has failed, and if that happens, you'll have much bigger problems.
- supercanuck 5y agoI heard the same argument about Bitcoin. If Bitcoin is skyrocketing, than you have bigger problems to worry about, indicating societal collapse.