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Originally Posted by kiora
"index fund inflows are now distorting prices for stocks and bonds in much the same way that CDO purchases did for subprime mortgages more than a decade ago. The flows will reverse at some point, he said, and “it will be ugly” when they do."
https://finance.yahoo.com/news/big-s...104146627.html
Well Michael Burry got lucky calling the subprime crash. I recall after he went investing into water / drinking water assets ; so how did that turn out? Eitherway, it's drastically different to call ETFs or Index Funds to be comparable to complex derivatives and level of risk associated in the GFC. Furthermore, we need to question why Warren Buffet insists on just buying the index fund is the best strategy for the typical investor than to just try and time and pick stocks. For good reason because even the expert managed funds that pick individual stocks door a poor job beating the index.
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