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The gambling allows price discovery to occur. Without it buying index funds is to buy no matter the cost.
by sharts 3y ago
The gambling allows price discovery to occur. Without it buying index funds is to buy no matter the cost.
- astrange 3y agoYou're providing price information anytime you buy a fund that's choosier than VTSAX. Conversely, if your opinion is the tech sector will go up and so you buy NVDA instead of a tech sector index fund, you've bet more than you intended to.
- chii 3y ago> Without it buying index funds is to buy no matter the cost. for the retail people who are bad at actually discovering prices, their buying of index funds instead actually makes the market more efficient.