Index Fund Bubble

[Anonymous No.55590075]

Real or not?

[Anonymous No.55590721]

>>55590075
maybe i mean once boomers start cashing out their ponzi 401ks sure why not

[Anonymous No.55590765]

Aren't ETF purchases mostly cash, and not credit/leverage driven? That is, there isn't a debt aspect to overvalue it?

[Anonymous No.55590780]

>>55590075
There is some truth to it. At a certain point it's all just 'passive money' pushing markets around. What he's trying to say is you need speculators to determine the price and not just algorithms.

[Anonymous No.55590805]

>>55590075
My boomer dad recommanded me an index fund 3 years ago

I put thousands in it

Went well first year, few hundred in plus

last year I lost thousand something

Now i am finally at break even at a whopping 18 dollar profit. Yes, $18 dollars.

index funds are a fucking scam

[Anonymous No.55590817]

>>55590075

It relys purely on momentum because the index fund managers have no leeway in how they run the fund. Money comes in, you buy the entire index no-matter what. Customers want to cash out, you sell the entire index no-matter what.

[Anonymous No.55590820]

It's a real risk, but "bubble" implies that it's only a question of time before it pops, however index funds are so established and forever in-demand that I think there's a good chance that the situation keeps up indefinitely.

[Anonymous No.55590877]

>>55590075
Index funds are often overvalued intrinsically compared to individual sector funds comprised of smaller-cap stocks. However, the popularity and high volume of index funds give them enough price momentum to pump for many weeks.

[Anonymous No.55590881]

>>55590075
Hot take: The "AI bubble" is actually the transition from the Information Age to the Robotics Age

Look forward to more censorship (that AI ironically facilitates) on top of losing your jobs. Nobody’s called it yet but I’m calling it here: The Robotics Age

[Anonymous No.55590919]

>>55590805
>index fund
>3 hekkin years dood!
>its a scam

[Anonymous No.55590922]

>>55590919
Ah okay so 18 dollars every 3 years wow i will be happy with my 180 dollars after 30 years then

[Anonymous No.55590947]

>>55590922
You started buying in at the top. Nothing else to it.

[Anonymous No.55590959]

>>55590805
why the fuck didnt you just put it in sp500, it's the normie index fund

[Anonymous No.55591256]

Which index fund?

[Anonymous No.55591278]

>>55590922
If you want an even pay out buy t bills

[Anonymous No.55591281]

>>55590805

>le boomer

Lol kill yourself faggot

[Anonymous No.55591483]

>>55590075

The 401k was introduced in 1978 and was ubiquitous by 1988. For the last 35 years around 6% of all worker pay has been funneled into these funds, even those who would otherwise not invest. (due to automatic enrollment).

Those OG account holders are now reaching penalty free withdrawal age. They will gradually wind down their balances and eat away at whatever appreciation would have otherwise happened due to the perpetual 6% contribution.

Stagnation is the net result, not a bubble burst. Workers are all but forced to play the game due to 401k matching. Either they pump boomer bags or they forego a 3-5% of their wages. Yes, they could choose to invest in different funds, but the vast majority will not, at which point it becomes rational to continue investing in any fund that can expect to receive further blind contributions.

[Anonymous No.55591592]

Along the same lines as other people are saying ITT, I was recently thinking about index funds and the US stock market at large. Boomers like my dad never invested anything in the stock market because people used to rely more heavily on pensions and VA benefits, but now more than ever people are throwing much of their extra cash at the markets because the barriers to entry are largely nonexistent at this point. So you end up with P/E ratios that were previously thought to be outrageous quickly becoming the new norm, as the entire US economy becomes one huge Ponzi scheme. But you have no choice not to play, because there aren’t any better alternatives, save maybe crypto and real estate, which have also become huge ponzi bubbles. I don’t think it’s going to pop any time soon - there’s seemingly nothing that would precipitate that event - but it does seem with an aging population and boomers cashing out that these types of returns will not be typical in the future. So basically we’re boned, we’ll never retire, eat ze bugs etc - but it’s the new norm

[Anonymous No.55591726]

S&P vs. GDP is already untenable. The turkey might still grow but it will be killed in a spectacular fashion. If you can predict the exact date you will be the next Buffett.

[Anonymous No.55591787]

>>55590805
Try 30 years kiddo

[Anonymous No.55591819]

>>55591483
Except there are way more dollars being funneled in now vs 40 years ago and it will only increase with inflation as the money supply increases

[Anonymous No.55592157]

>>55591819

Like I said, stagnant. A 10% return when inflation is 10% is 0% real growth, all while having forced market exposure. You will need to put capital at risk in the market just to keep from being bled out by inflation.

35 years of all pump and no dump. People expect that to continue, even though people can actually sell now without a penalty, and alone enough the distributions will be mandatory.

[Anonymous No.55592392]

>>55592157
Investing has become more popular in recent decades, many boomers depend on pensions/social security and not on 401k’s.

Also peak boomer birth year was 1957 and most retirement planning calls for gradual unloading of stocks in the decade or two before hitting retirement age and shifting in to bonds so they’ve already started selling off for a while now.

[Anonymous No.55593192]

>>55590922
Dumped money in the market during 2022 lows and I’m like 20% up