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Why does nobody make an index fund of penny stocks? I ask rhetorically, because I tried it in a stock market game that used real data, years ago, and kept it up
by perl4ever 5y ago
Why does nobody make an index fund of penny stocks? I ask rhetorically, because I tried it in a stock market game that used real data, years ago, and kept it up for several years. But garbage is garbage, whatever people say about market efficiency.
There's a big difference between saying "we need to try 1000 things to find the one that works" and saying "if we try 1000 things, there will be one that works".
- AstralStorm 5y agoHedge funds like this exist actually. However, they tend to crash as hard as the companies they fund in any market swing.
- perl4ever 5y agoThere are funds of micro-cap stocks; I'm not sure if any have been really successful, but that's not quite the same thing as penny stocks, even though there is overlap.