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Interest to revisit such militant attitudes should the current crash of inflated bullshit techcos continue. Is your kids 529 plan on the S&P. Well congrats - y

Interest to revisit such militant attitudes should the current crash of inflated bullshit techcos continue. Is your kids 529 plan on the S&P. Well congrats - you got to buy Tesla at the peak of Elon’s pump train just in time to be a ticket holder for his self-immolation show. Does your 401k hold small cap exposure to the Russell. Yippee you get to be the bag holder for a good chunk of the SPAC garbage VCs dumped into public markets based on things like projections that personal electric helicopter taxis would become ubiquitous in US urban markets by 2025. Passive investing got gamed by Silicon Valley and isn’t exactly what Bogle had in mind when he got started.

sepiasaucer 4y ago
I don’t understand what point you are trying to make. Specific stocks being bad investments is not an argument against passive investing. The whole point of index funds is to diversify your portfolio so you track the overall market, not any specific stock or group of stocks. If you are assuming you know which stocks/sectors are under or overvalued, then I guess active investing makes sense, but that seems like a flawed premise to start from.
- jshaqaw 4y ago
  You aren’t tracking the whole market. An index is a subset. Even total market indices have weightings which embed biases. And the whole game has been reverse engineered by charlatans to dump crap into rivers of blind money. If think capital offerings aren’t designed explicitly to target index inclusion criteria then you aren’t in on the joke.
  - cromka 4y ago
    > And the whole game has been reverse engineered by charlatans to dump crap into rivers of blind money. If think capital offerings aren’t designed explicitly to target index inclusion criteria then you aren’t in on the joke. This is an interesting and plausible take, just wondering if you have actual published resources on that or is it your personal, arguably justified hunch?
    - jshaqaw 4y ago
      Just talk to VCs, CFOs, and their bankers around offerings. Targeting say the Russell 2k inclusion criteria is an explicit part of the roadshow pitch.

sepiasaucer 4y ago

I don’t understand what point you are trying to make. Specific stocks being bad investments is not an argument against passive investing. The whole point of index funds is to diversify your portfolio so you track the overall market, not any specific stock or group of stocks. If you are assuming you know which stocks/sectors are under or overvalued, then I guess active investing makes sense, but that seems like a flawed premise to start from.

jshaqaw 4y ago
You aren’t tracking the whole market. An index is a subset. Even total market indices have weightings which embed biases. And the whole game has been reverse engineered by charlatans to dump crap into rivers of blind money. If think capital offerings aren’t designed explicitly to target index inclusion criteria then you aren’t in on the joke.
- cromka 4y ago
  > And the whole game has been reverse engineered by charlatans to dump crap into rivers of blind money. If think capital offerings aren’t designed explicitly to target index inclusion criteria then you aren’t in on the joke. This is an interesting and plausible take, just wondering if you have actual published resources on that or is it your personal, arguably justified hunch?
  - jshaqaw 4y ago
    Just talk to VCs, CFOs, and their bankers around offerings. Targeting say the Russell 2k inclusion criteria is an explicit part of the roadshow pitch.