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Topic	Pension fund managers have cost Americans more than $600b in the past decade
FLUFFYGERM 07/12/18 3:35:13 PM #19:	tennisdude818 posted... FLUFFYGERM posted... Questionmarktarius posted... Hold on, I didn't catch the "public" part there, the first time. Prison terms are in order here, assuming fraud and/or negligence laws apply to this sort of thing. I don't think it's fraud or negligence. It's just that people still think that they can beat the market if they get a fund manager who gets paid commission. When in reality, you'd be better off tracking the market via index funds and investing for the long-run. There's a reason why savvy investors recommend low-cost funds from Vanguard or Fidelity over actively managed funds. There has been chatter for years that a bubble is brewing in passive strategies due to the rise of ETFs. For much of the past decade investors made bank while throwing money at ETFs because Fed policy sent stock valuations to the moon. So a bunch of companies received big investments by virtue of being included in an index. There hasnt been a bear market since ETFs became so popular. I wonder what it looks like when they are sold in mass rather that bought in mass. Ultimately the value of an index will still go up in the long run, because the over-all economy will grow in the long-run. A correction wouldn't be pretty, but it wouldn't be disastrous for people who have a lot of money in indexes. Unless they sell everything during the downturn because they're panicked. Then they're fucked. I'm also skeptical that we'll see a bear market anytime soon. https://www.marketwatch.com/story/the-bear-case-for-stocks-is-so-obvious-it-cant-be-right-2018-07-12 --- Do good. Eat communists. <cite>FLUFFYGERM posted [p:904957650] in Pension fu... [t:76800690]...</cite> <quote><cite>tennisdude818 posted...</cite> <quote><cite>FLUFFYGERM posted...</cite> <quote><cite>Questionmarktarius posted...</cite> <quote>Hold on, I didn't catch the "public" part there, the first time. Prison terms are in order here, assuming fraud and/or negligence laws apply to this sort of thing.</quote> I don't think it's fraud or negligence. It's just that people still think that they can beat the market if they get a fund manager who gets paid commission. When in reality, you'd be better off tracking the market via index funds and investing for the long-run. There's a reason why savvy investors recommend low-cost funds from Vanguard or Fidelity over actively managed funds.</quote> There has been chatter for years that a bubble is brewing in passive strategies due to the rise of ETFs. For much of the past decade investors made bank while throwing money at ETFs because Fed policy sent stock valuations to the moon. So a bunch of companies received big investments by virtue of being included in an index. There hasnt been a bear market since ETFs became so popular. I wonder what it looks like when they are sold in mass rather that bought in mass.</quote> Ultimately the value of an index will still go up in the long run, because the over-all economy will grow in the long-run. A correction wouldn't be pretty, but it wouldn't be disastrous for people who have a lot of money in indexes. Unless they sell everything during the downturn because they're panicked. Then they're fucked. I'm also skeptical that we'll see a bear market anytime soon. https://www.marketwatch.com/story/the-bear-case-for-stocks-is-so-obvious-it-cant-be-right-2018-07-12 --- Do good. Eat communists.</quote> ... Copied to Clipboard!
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