Re:Why Index Funds Are Like Subprime CDOs
by fountainofage on Wednesday September 04, 2019 @07:18PM
(#20882339)
And isn't the fundamental truth of investing: optimize returns based on your tolerance for risk? For the vast majority of the population, the optimal way to get the highest returns with the lowest risk is to put the money into either the S&P 500 or a total market index.
Every study has shown that people do not get rewarded appropriately for the risk they take on when they move away from diversification.
Re:Why Index Funds Are Like Subprime CDOs
by matz1 on Wednesday September 04, 2019 @07:36PM
(#20882469)
The fundamental as in you should know how anything generate value, what is index actually is, how the index work, why the index being recommended, how the stock market work, etc.
Every study has shown that people do not get rewarded appropriately for the risk they take on when they move away from diversification.