Item — HN Reader

> As a retail investor, you should buy an index fund and then forget about it.

That definitely was true.

I am unsure it is still true. Index funds have taken so much of the trade volume the are becoming momentum strategies

So long as you are happy following the market wherever it goes, and if the recent past is a guide then up is the direction, then yes.

But given the nepotism and corruption in the highest reaches of USAnian society (e.g. Trump's crypto currency scams and the blatant inside dealing and rule ignoring of the Space X float) the future looks much less certain than the past

2 comments

> I am unsure it is still true. Index funds have taken so much of the trade volume the are becoming momentum strategies

I don't understand how that's supposed to work?

Btw, keep in mind that index funds are typically really, really keen to lend their shares out to short sellers.

> But given the nepotism and corruption in the highest reaches of USAnian society (e.g. Trump's crypto currency scams and the blatant inside dealing and rule ignoring of the Space X float) the future looks much less certain than the past

That's a big part of why I am invested in a global index fund, not anything America specific.

The future always has risks but the question is that does an option better than index funds exist?

Depending on jurisdiction and taxation, yes. Eg in many places owner-occupied housing is favoured, and might make sense to acquire, even though otherwise it's silly: a single lumpy usually highly levered position; no diversification; multiple times your networth and with very high transaction costs.