Why Index Funds Are Like Subprime CDOs

Re:Why Index Funds Are Like Subprime CDOs by mcguire on Wednesday September 04, 2019 @09:07PM (#20882980)

If 1% of the money in index funds exited the market in any form (not just index fund withdrawals), it's going to be a bad day any way you look at it.

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Re:Why Index Funds Are Like Subprime CDOs by segmondy on Wednesday September 04, 2019 @11:11PM (#20883557)

I think the fund managers know this and will collude to prevent it from happening. They are smart enough to know about game theory, it's not their money. So they can sit and not go on a selling frenzy.

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Re:Why Index Funds Are Like Subprime CDOs by danw1979 on Friday September 06, 2019 @10:53AM (#20896166)

Are they manually managed though ? isn't there an algorithm somewhere responsible for balancing these funds ?

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