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Everybody in the tech world is talking about investing in index funds. Historical evidence says this is the way to go, but when everybody is doing it, it makes
by crimsonalucard 12y ago
Everybody in the tech world is talking about investing in index funds. Historical evidence says this is the way to go, but when everybody is doing it, it makes me question whether or not it's the right choice.
There's a possibility that the market is in another bubble right now.
- walshemj 12y agothe trouble with index funds is you participate fully in any crash/dogs eg index funds had to hold enron to the bitter end. some of my active funds saw the problems with the banks and got out before the crash now no index fund is ever likely to make up the difference - the active fund is now always ahead of the index
- sumedh 12y ago> the active fund is now always ahead of the index but the question is how do you select the active fund which will consistently beat the market in the future.
- walshemj 12y agolook for ones that have been around for 100 plus years and with 30-40 years of increasing dividend payments
- Matt_Cutts 12y agoThis guy named Bernie Madoff was able to outperform the market for years and years, I hear.
- hnnewguy 12y ago>hold enron to the bitter end. Holding Enron in a portfolio consisting of hundreds of securities will have little impact on the overall portfolio returns. That's the whole point of diversification.