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The index funds have to invest their available money minus the redemptions. Very few funds can invest in options. Most of them can only hold bonds and/or stocks

The index funds have to invest their available money minus the redemptions. Very few funds can invest in options. Most of them can only hold bonds and/or stocks. There are futures, options and whatever else funds but they are the minority by far. The fed does not have to print money for the market to rise. The economy can/will grow. Inflation itself will impact the market. We all bitch about prices rising but companies are willing to raise prices and we are willing to pay. Plus a lot of hard assets will be rising in price and that will be reflected in their stock price. Things may seem bleak but as long as there's money to spend the market will rise. It's a guessing game but the best choice for decades has been to stay invested and invest in the market. Nothing says that has changed.

creakingstairs 4y ago
> The index funds have to invest their available money minus the redemptions. Very few funds can invest in options. Most of them can only hold bonds and/or stocks. There are futures, options and whatever else funds but they are the minority by far. TIL. Thanks for letting me know. > The fed does not have to print money for the market to rise. The economy can/will grow. I agree that regardless of printing money, the economy will recover but I disagree that it will recover as fast as you've said (hit the highs in 2 years). This is because I believe the money printing played a big part in the crazy bull run last 5 years. So without that, inflation control and geopolitical uncertainties abound, I just don't think we could hit that high that fast. That being said, I predicted that the inflation would keep growing but it seemed to have cooled down a little bit - so maybe I'm being too grim