• Please be sure to read the rules and adhere to them. Some banned members have complained that they are not spammers. But they spammed us. Some even tried to redirect our members to other forums. Duh. Be smart. Read the rules and adhere to them and we will all get along just fine. Cheers. :beer: Link to the rules: https://www.forumsforums.com/threads/forum-rules-info.2974/

EXPOSED: America’s Brutal Index Fund Problem

300 H and H

300 H and H

Bronze Member
GOLD FF Supporter
25:42 min.


Felix & Friends (Goat Academy)
381K subscribers

00:00 Intro00:39 Concentration Precedent: Dot-Com Crash Wiped Out 49%02:07 Three Biggest Risks Hiding in Index Funds03:34 Current Concentration: Magnificent Seven (7 stocks) = 37% of Market04:42 Historical Comparison: Concentration Doubled Since 200005:42 Mechanism: Market Cap Weighting Loop06:40 The Mechanism Works in Both Directions (Up and Down)07:02 Preview in 2022: Magnificent Seven Lost 41%; S&P Lost 20%09:19 Hidden Ownership: BlackRock, Vanguard, State Street09:39 These Three Firms Manage Over $20 Trillion in Assets09:56 Ownership: Top Three Shareholders in 100% of S&P 500 Companies11:01 Department of Justice Antitrust Concerns (Texas vs. BlackRock)11:56 DOJ Quote on Institutional Asset Managers and Anti-Competitive Behavior13:18 Loss of Voting Rights and Regulatory Risk14:02 The Critical Issue: Loss of Price Discovery15:17 Passive Investing is Now 51% of All Fund Assets (Was 19% in 2010)16:21 Result: Stocks Are More Correlated Than Ever17:08 Why Diversification Fails: All Stocks Move Together17:23 Danger: Passive Flows Amplify Volatility During Crises18:44 51% of Fund Assets Trying to Exit Simultaneously19:08 The Loop: Panic Selling Leads to Forced Selling22:00 Action Step 1: Check Your Concentration (Alternative: Equal Weight Funds)22:43 Action Step 2: Diversify Beyond U.S. Large Caps (Risks Discussed)23:54 Action Step 3: Don't Panic (Be Aware of Risks)24:05 Action Step 4: Learn to Pick Individual Non-Index Stocks24:55 Summary: Concentration Risk is Real and Double 2000 Levels25:30 Outro
---------------------------------------------------------------------------------------------------------------------------------------------------
Excellent overview of the stock market as it is today. Well worth the time for the information on the structure of the marketplace, and the issues that is has caused.
 
the only thing I know about the stock market is that I won't actually make any money and the trust fund kids will.

oh, and, that kramer guy is a fraud and a liar.
 
knotsew innocent said:
the only thing I know about the stock market is that I won't actually make any money and the trust fund kids will.

oh, and, that kramer guy is a fraud and a liar.
Click to expand...
I used to think like you do now. But saving in a bank is not so hot, and mutual funds are robbery in my mind. So, my retirement
savings I invested in individual stock I picked. It did take some time to do homework to find a few companies to invest in. A myriad of good advice is on You Tube. The truth is the market goes down 15% of the time and up 85% of the time on average. You get to pick the day you invest, but you must also not pick the day you sell.
No loss is incurred if you don't sell at a moment in time but sell when the market is in your favor. One must be patient and wait for the day and be ready to sell when that day comes.
Most of all be glad you live in America. Not every place on the globe provides the opportunity to invest and earn wealth.
 
Last edited:
  • Like
Reactions: Doc
You must log in or register to reply here.
Top