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grey-area • yesterday at 9:30 PM • 1 reply • view on HN

With massive concentration like this you are forced to be bullish, as your success is predicated on the bubble not bursting.


Replies

layer8 • yesterday at 9:39 PM

With broad index funds you’re merely following the average market sentiment. So you’re only bullish to the extent that the stock market as a whole is bullish on those stocks. What you’re really doing is betting that you’d be unlikely to perform better with active investments. Which is a good bet insofar as most active funds underperform in comparison.