A Professor Who Was Right About Index Funds All Along

Re:A Professor Who Was Right About Index Funds All Along by walshemj on Saturday October 22, 2016 @11:26AM (#12769042)

I suspect that if there is a big bond crash which is likely to happen a lot of those invested in index funds that robotically invested in bonds will be taking some big losses.

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Re:A Professor Who Was Right About Index Funds All Along by saryant on Saturday October 22, 2016 @01:32PM (#12769601)

Yeah, that's the point. You rise with the market, you fall with the market.

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Re:A Professor Who Was Right About Index Funds All Along by walshemj on Saturday October 22, 2016 @03:59PM (#12770322)

and if you pension fund is 50/50 and theirs a bond crash shortly before you retire?

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Re:A Professor Who Was Right About Index Funds All Along by saryant on Saturday October 22, 2016 @07:28PM (#12771079)

You're arguing against a strawman. Index funds do not protect you from market crashes, that's not the point and never was. Index funds save you from forking over tens or hundreds of thousands of dollars in fees to active managers who may or may not outperform the market as a whole.

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