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A comment on Why Index Funds Are Like Subprime CDOs. Parent comment

Re:Why Index Funds Are Like Subprime CDOs by nabdab on Wednesday September 04, 2019 @02:17PM (#20879937)
It’s all fine to say that active funds can’t outperform index funds... but if it’s a bubble and it crashes, then people in active funds will be having a field day while the people who bet it all on index funds will be left behind like the people who leveraged their 3 homes to buy 5 more during the “real estate always and consistently goes up” days of pre 2008.

The problem with bubbles is that everyone’s a winner and every indicator is confirming the everlasting increase.. on the way up.

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Re:Why Index Funds Are Like Subprime CDOs by edmundsauto on Wednesday September 04, 2019 @04:05PM (#20880890)
This would assume that active funds exit at the right point in the crash. What if they wait to the bottom to sell? What if they sell during a temporary dip, then the market rallies (pseudo-bubble that never happens?)
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Re:Why Index Funds Are Like Subprime CDOs by markbnj on Wednesday September 04, 2019 @10:41PM (#20883422)
> It’s all fine to say that active funds can’t outperform index funds... but if it’s a bubble and it crashes, then people in active funds will be having a field day

The CNBC article I linked claims that actively managed funds have been beaten by the S&P 500 for _nine straight years_. How long do the investors in actively managed funds have to wait for their big celebration?

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