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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 stoc
by 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