Quote:
Originally Posted by SportsDino
Good index funds have risk. A diversified bet is still a bet.
|
Of course. But the risk is mitigated, generally, because the best funds are going to be weighted evenly across a wide spectrum. You won't have huge upside, but you won't have a huge downside (compared to the rest of the economy). A good index fund play is an investment in capitalism itself.
Quote:
|
They are not invincible, that is the thought I'm railing against... although for the average investor is it a better option...
|
Nothing is invincible when it comes to this stuff.
Quote:
|
But if you want to get really into thinking about it, technically you could play timing games on index funds of the whole economy as well. For instance, I'm sure most people would appreciate dodging the DJIA going from 12000+ to 8000 territory.
|
Sure they would. However, trying to time the market is a fool's errand. Eventually, you will find yourself chasing a trend and end up on the wrong end of it, either losing more value than you should, or leaving some on the table.
Quote:
|
All that noise aside, I would rather people buy an index fund then follow the picks within this thread without studying the stuff themselves. As Tekneek says, its a lot of work, and for the most part probably not worth the costs/risks.
|
People just need to know that "picking stocks" is something
most individuals should only do for fun, and not with money that they really need for anything else.