Month: May 2024

Index Funds | Trading Academy

Things like dot-com or real estate market bubbles happen. The subprime mortgage crisis was tons of loans in the form of collateralized bonds that people bought based on their $1 value, while borrowers could realistically pay something between 15 and 20 cents on these mortgages. It’s hard to call it an efficient market. Overall, markets are still not very efficient, but over the years, this efficiency obviously increases. On the other hand, even slightly outperforming the markets – showing slightly better returns than the index – is a non-trivial task. In December 2017, Warren Buffett won a million-dollar bet. Back in 2007, he loudly stated that over ten years, a regular index fund would outperform the praised hedge fund managers, considering all their fees. And they have hefty fees: usually 2% of assets per year plus 15-25% of profits. As a result, the dumb S&P 500 index beat the funds of funds (have not been named publicly) by almost twice as much. submitted by /u/FXgram_ [link] [comments]

Welcome to the r/XGramatikInsights Trading Community! Your Ultimate Guide to Getting Started

​ Join our Stock, Forex & Trading Community r/XGramatikInsights Newcomers, listen up! Before you dive into posting, take a moment to explore our Wiki. Chances are, your burning questions have already been answered there. We’ve put in the work to compile resources to help you hit the ground running. Now, let’s talk rules. We’re all about fostering a supportive and respectful environment, but we do have some non-negotiables. Be sure to give our community rules a thorough read-through to avoid any unpleasant surprises. First-timers often wonder about brokers. Check out our Wiki for a list of remarkable brokerage firms to get you started on the right foot. Got something on your mind? Have a brilliant suggestion? Don’t hesitate to shoot us a message. We’re open to feedback. submitted by /u/XGramatik [link] [comments]