Utopia Talk / Politics / Index funds

jergul large member	Tue Jan 15 10:07:12 Background Index funds are becoming popular in Norway with yearly fees in the 0.2% range. I noted significant whining from stock investors (index funds keep the market from being able to find equilibrium pricing on listed companies). The Oslo stock exchange is quite small and dominated by very few companies (Equinor alone represents 24% of listed value on the exchange). Here is what I figure. Index funds moderate price declines. This pisses off professional investors because it limits their ability to buy under valued stock (low volume can give high volatility as sells have to stoop low to find a buy bid. Index funds mess with that as they buy as soon as new money enters the fund). I think in other words it is more than losing out on active portfolio management money (money shifting from active to passive funds). What do you figure?
Hrothgar Member	Tue Jan 15 11:49:31 The tiny fees alone, and automatic diversification across literally everything in the given stock market are worth the investment vs managed funds imo. I've been dumping retirement savings into a Vanguard index fund for years now. When the market drops you just get more for less and it averages out. I'll phase out of them when I get about 55 and move the retirement funds into bond type vehicles with minimal downside risk and minimal upside potential in order to ensure as best as possible the generated wealth is maintained at that point until actual retirement. Side note, I'm not confident the human world we know won't end by then through a nuclear war or weaponized virus incident.
Dukhat Member	Tue Jan 15 11:51:51 Weaponized Virus incident would be good though. Wipe out most of the retards.
jergul large member	Tue Jan 15 12:33:49 Hrothgar Yah, index funds are a no-brainer. The house rake on actively managed funds really destroys earnings. My question related more to why stock investment professionals are so prissy about index funds. Part of it certainly loss of investment capital (people are not giving them money to look after), but I was thinking more in terms of how index funds impact on the Norwegian Stock Exchange. It seems to me the index funds lower downside volatility. Which, if true, is a significant observation. Hence my query.
jergul large member	Tue Jan 15 12:34:15 (if you can excuse the poker analogy).
Forwyn Member	Tue Jan 15 12:57:21 "Weaponized Virus incident would be good though. Wipe out most of the retards." Lulz. Rurals far outstrip urbanites in longevity in such scenarios. Probably not the outcome you're hoping for.
Sam Adams Member	Tue Jan 15 14:09:57 "My question related more to why stock investment professionals are so prissy about index funds. " Because most of those turds cant beat index funds and dont like being matched or beaten by something so simple and whine about it.
jergul large member	Tue Jan 15 16:51:14 Its hard to be average. They all do. About half the time. The Norwegian oilfund tactic is best I reckon. 50% index funds and 50% in Government debt. ALL THE TIME. So sell of stocks to buy debt when stocks climb and sell debt to buy stocks when stocks fall in order to maintain the ratio. The tactic has seriously outperformed the market.
Freak Nation Member	Wed Jan 16 17:33:10 Index funds are so dead http://www...index-fund-dies-at-age-89.html
jergul large member	Wed Jan 16 17:39:39 "Bond % roughly equal to your age" sounds like a pro-tip.
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