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Index funds will survive anything short of a complete collapse of the financial system. Even if returns are low, they only have to be better than the alternativ
by nradov 1y ago
Index funds will survive anything short of a complete collapse of the financial system. Even if returns are low, they only have to be better than the alternatives (on a risk adjusted basis).
- bombcar 1y agoSure - but being better than the stock-alternatives in a fifty year bear market is cold comfort; and many retirement plans are built on assumed real returns that may never be seen again.
- kwere 1y agoif the consumer base collapse what will keep the stock fundamentals going ?
- nradov 1y agoStock values may decline but there will still be index funds holding those stocks.