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Extremely disappointing workplace pension

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Comments

  • Marcon
    Marcon Posts: 15,989 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    edited 21 February 2024 at 9:28PM
    Cus said:

    Retail continue to move flow into passive index tracker funds, and are told to not sell when it dips. Less people are therefore valuation driven, and index trackers just have to keep on investing based on market capitalisation, creating a loop of onwards and upwards.  How will it break?
    Sounds as if you're quoting from something - and in rather strange English. Not quite sure what point you're making?
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • JohnWinder
    JohnWinder Posts: 1,862 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    ‘Retail continue to move flow into passive index tracker funds, and are told to not sell when it dips. Less people are therefore valuation driven, and index trackers just have to keep on investing based on market capitalisation, creating a loop of onwards and upwards.  How will it break? ‘
    Yes, and it will break when the clever active investors decide the securities in the tracker funds are over-valued, pile out of them and push valuations down to better levels. So, my request to them is, ‘get on with it’ so valuations are more realistic. Whereas what is actually happening is the clever active investors are pushing stocks like Nvidia up to thrice their price in one year; were it only the passive investors in the market all stocks would go up at the same rate. But no, someone’s gone crazy with Nvidia and it’s the active traders. A pox on them.
  • Cus
    Cus Posts: 945 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    I agree, but I think a number of actives (hedge funds) have been burnt by shorting certain stocks in the last few years based on valuations, but they just keep on rising.  
  • Cus
    Cus Posts: 945 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    Marcon said:
    Cus said:

    Retail continue to move flow into passive index tracker funds, and are told to not sell when it dips. Less people are therefore valuation driven, and index trackers just have to keep on investing based on market capitalisation, creating a loop of onwards and upwards.  How will it break?
    Sounds as if you're quoting from something - and in rather strange English. Not quite sure what point you're making?
    It was a reply to @Hoenir regarding the endless rise.  I was not quoting, just quick typing 
  • pieroabcd
    pieroabcd Posts: 738 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    I've reinvested 47% of that pot into an US equity fund managed by the same company that has delivered very well over the years. 
    There isn't much in that pension pot, that makes me feel less anxious.
    Fingers crossed
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