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A comment on Silicon Valley Venture Capitalists Prepare for an I.P.O. Wave. Parent comment

Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ... by rpedela on Monday April 16, 2018 @11:07AM (#16849456)
Index funds are already diversified. When you invest in one, you are betting that the entire economy or a sector of the economy, depending on the index fund, will increase in value.
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Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ... by walshemj on Monday April 16, 2018 @06:27PM (#16853427)
Yes but take Enron for example or any other value trap an index fund must buy those.

And the Massive buying of indexes bids up the price of shares like FANG's beyond the shares real value.

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Re:Silicon Valley Venture Capitalists Prepare for an I.P.O. ... by rpedela on Monday April 16, 2018 @06:32PM (#16853470)
On average, one company in the portfolio going bankrupt isn't going to make much of a difference assuming the portfolio is large enough. Most index funds have a large enough portfolio.
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