Casino stocks, more risky. Cruiselines, more risky.
The money has to flow somewhere.
I mean it's not just tech that's not risky. There's some other equities out there too which seem to be concensus safe havens by investors. Eg. Lululemon, Home Depot.
This is why we're seeing big interest in some sectors of real estate too. money is cheap and big chunks of the economy seem risky. Why not invest in something else. Also risky, but TINA!
It's also important to note that different sectors are getting hit in different ways. Renewables up, oil majors down. Tech way up. So if total-market ETFs are pumping in money, they are just inflating overall valuations, and investors are the ones deciding which sectors and companies are winning or losing. Or if it's market segment ETFs, that would also be an interesting story.
Individuals investing in ETFs doesn't move the needle. Fund managers seem to be part of some cartel, pumping various asset groups at various times. We're just along for the ride.
Yep. If covid had put 40 million US white collar people on unemployment instead of hourly folks, the market would have crashed hard as the monthly influx of money dropped and some people started pulling money out early to get by.
If investing in ETFs/index funds is morally blameworthy, which is already questionable, the blame surely lies with active fund managers and their outrageous costs driving people into the arms of low-cost instruments that, net of fees, have had better performance.
If that’s not the case, please explain.
If there ever was any social responsibility in investing, it would have been providing fluidity into new ventures and making markets efficient by making educated investments. I find this trend worrisome and I think it might be sending incorrect market signals.