According to Morningstar research in the middle of 2019 almost half of all US stocks were part of some passive index fund. This number almost doubled since 2009. In the meantime, active management is on a steady decline, especially active managed funds. Around the same time Dr. Michael Burry compared index funds to CDOs. Let’s look into this case and try to draw something from it for our benefit.
1. How come index funds are compared to CDOs if they only track industries or sectors of economy?
What we often miss is that the index fund, instead of being a neutral observer, is an active participant in the fundamentals of the companies that compose a particular index. The fund does so by providing capital and influencing market value of a security (this also opens a window of opportunities for the company behind the ticker to raise capital via bank loans or private investments). What’s so bad about this? Well, passive funds don’t go through balance sheets, there is no fair value assessment, no analysis and no risk taking. They just buy whatever company is big enough to make it into the index. This company can then use provided capital to stay afloat or influence it’s price by share buybacks, dividends or simply pay huge bonuses to it’s management. Just like banks didn’t care about subprime mortgages that were packed into CDOs, index funds managers don’t care about what exactly goes into their ‘soup’. With the banks it was just greed and ignorance – in case of index funds it’s by design.
When there is a stable influx of new capital into passive funds, zombie companies are dragged higher and higher. WSB goddess Cathie Wood called this the greatest misallocation of funds in the history. But why is so much cash flowing into index funds? Is it a trend? Is someone incentivized to promote them? Well, yes, but the main reason is different: boomer psychology and our friend, the FED. See, boomers have massive capitals. All those pension funds, retiring firefighters, trust babies, capital heirs – they all seek safety. They don’t try to get 500% returns YOY or lose it all. They are very content with just beating inflation. Throw few percents above inflation and they will be over the moon. For a long time their favorite asset class were treasuries.
2. What is happening to the bond market?
In 2016 US bond market was almost $40 trillion in value, compared to less than $20 trillion for the domestic stock market. Now, I haven’t seen yet the data about the siz... keep reading on reddit ➡
This one is for anyone new here:
The stock market is the world's most powerful tool for building wealth. But until recently, it's only been accessible to people that ALREADY had wealth.
However, Index Funds have become a vital tool for getting access to the stock market and enabling anyone, even absolute beginners, to build world-class investment portfolios with relative ease.
In this sub, you'll hear a lot about index funds and, in particular, Vanguard Index funds. But it's sometimes not clear exactly what people mean by that. So I've created a guide to help anyone new here get up to speed on all things index funds. So in this video, you will learn:
What index funds are
Why you need them
How to buy them
What to look out for when you do
2020 saw more people start investing than in any other year in history. And if you, too, are just starting out, it can be very tempting to dive straight into a bunch of meme stocks. Please don't. In the video, I'll take you through why it's a bad idea to invest in individual companies and why you should instead be looking at index funds.
You can watch it here, and I hope you find it helpful!
(I put a lot of effort into creating this content, and the only real reward is when I hear that it's helped someone in some way. It's super hard to keep motivated, so please have a thought, both for me and the people that may find this helpful, before auto down-voting this for self-promo. Cheers!)
Edit: Wow thanks so much for the awards, you guys have made my year! I’ll try get the next video to you ASAP!
A big part of this is Bitcoin rallying, but also a lot of other cryptocurrencies are up 50-150% this week. Ethereum, the second largest, is up 61%. Stellar notably has jumped up 164%.
The rally appears to have been prompted by regulatory guidance allowing banks to transact in stablecoins, as the biggest winners have been blockchains that participate in that space.
I’ve spent the last month and well over 40 hours of my free time researching, compiling, filming, and creating what you see here today. This list shows more Push-Ups than any other like it AND gives ranking/context its difficulty. Here are the Links...
Video - containing things like:
Excel Sheet- contains EVERYTHING from above AND:
Well, let me first start off by saying, this turned into a much bigger project than I was originally expecting...
Long story short I expected the internet to already have this, but it didn’t to my surprise! Greatist had an 80+ push up list that was alright but did a poor job of conveying the difference in difficulty between progressions. It also used a lot of slightly different variations to get to that 80+ number.
Youtube also failed me in this search. Almost all videos had less than 50 push-ups and most LVL 1-100 took big leaps between ‘levels’. I just felt like there was very unclear information for people to set their expectations by.
But more than anything, I’m working hard on what seems like a far off dream of making youtube a full-time job. I cannot think of a more fun way to spend my day than teaching people and entertaining them with the hobby/sport/passion that I love so much. So expect a lot more videos from me in the future on Youtube, and definitely smaller projects so I can get them out a bit faster!
So yeah... I expect more than a few “you forgot xyz” push up, but I’m all ears!
I think we could make this a community-style list that could just be a good refer... keep reading on reddit ➡
> After a 312% year-to-date rally and a market value of more than $35 billion, Peloton will join the ranks of its large-cap tech peers: inclusion in the Nasdaq 100 index.
>The annual year-end shake up to the technology-heavy index will result in the removal of 6 companies and the addition of 6 others, Nasdaq said on Friday.
>Aside from Peloton, the companies to be added to the Nasdaq 100 prior to the market open on December 21 are American Electric Power, Marvell Technology Group, Match Group, Okta, and Atlassian.
>Many of the names being added to the Nasdaq 100 index have seen a surge in demand for their product offerings due to the COVID-19 pandemic and its related restrictions on businesses and social gatherings.
>Peloton customers have seen their expected delivery time for the connected fitness equipment extend into months as consumers adapt to shuttered or capacity restricted gyms. Peloton sales are up 172% year-over-year.
>Those 6 companies are taking the place of BioMarin Pharmaceuticals, Citrix Systems, Expedia Group, Liberty Global, Take-Two Interactive Software, and Ulta Beauty.
>The Nasdaq 100 index was launched in 1985 and comprises of the 100 largest Nasdaq exchange listed non-financial companies. The index is reconstituted each year in December to coincide with the quadruple witch expiration Friday of the quarter.
>The Nasdaq 100 is up 38% year-to-date, outpacing the S&P 500's year-to-date gain of 13% by nearly triple.
Seriously, this thing is an endless source of entertainment and knowledge. If you're still on the fence - just buy it. BUY IT.
Hey guys -
Decided to treat myself to something nice - been saving up for the Valve Index and finally pulled the trigger last night.
Quick question - what accessories are recommended? Particularly how do you guys set up the base stations? Are there any good recommendations for those stands? I can use Amazon or Bestbuy, etc.
Any other tips and tricks for first time set-up would be great as well, thank you so much, happy to join the community!
This solved 80% of my tracking issues in first person VR games. The stupid 'frunk' cover creates serious tracking anomalies when the knuckles controllers are held in close proximity to your face. This is most evident when trying to aim down sights.
Removing this will solve a lot of these issues so try this. Cheers :)
Im too tired having to check reddit every single time I want to make a trade? I read some article on google about how index funds only go up (average 75% a year) and was hoping I could get in on the action with the right shares. I don't want some stupid index fund with 'long-term' performance, I want tendies, and I want them now.
I've had the Index on my wishlist since it was first announced but never pulled the trigger. When I randomly saw the full kit "in stock" with only a 2-3 week backorder down from 8 weeks I decided now is the time. I used the Rift mostly for Elite Dangerous and X-Plane 11. I played the occasional VR AAA title but nothing was as immersive to me as Elite Dangerous or X-Plane.
I received the Index a few days before Christmas and have been glued to it ever since. I had Half Life: Alyx in my library untouched since March (not sure why I got it free back in March either as I was under the impression it was only free when you bought the Index)
My impressions of the headset so far.
With the Rift, I had to always wear my glasses until I ordered a set of prescription lens inserts. Text was blurry and details were hard to make out without my glasses or lens inserts. I assumed the Index would be the same deal so I ordered prescription lenses at the same time as the Index (which have not shipped yet). I figured I would just use my glasses for a few weeks until the inserts arrive. To my surprise, the difference in clarity and text readability between the Rift and the Index is huge. I stopped wearing my glasses after the first couple of play sessions because I didn't feel like I needed to. Text was still sharp, details easy to see, I can browse the web easily in virtual desktop. All the adjustability in the headset is a huge improvement towards achieving the perfect comfortable fit. Even the few times I was wearing glasses. I find I am able to wear it for hours at a time without issue.
Not much to say about the base stations other than I really like that they're wireless and only need power. Makes mounting them much easier. I was running long USB extensions for my Rift which was messy to manage (I had 3 base stations with the Rift)
The controllers are also a significant improvement in comfort and function from the Rift. I didn't realize at first that you can tighten the hand straps so the controllers don't slip off your hand even if you are not gripping them with your fingers. I love how Half-Life and Until You Fall utilize squeezing the controllers as an input. It all feels very intuitive and comfortable to use.
I've been gaming on PC since the late 80s and Half-Life Alyx feels like the most significant advancement in gaming in my lifetime so far. I've played other VR titles but this is the first that felt truly immersive. I've only been able to play an hour or two... keep reading on reddit ➡
Trade result: All major Indexes down Friday and Monday. $AAPL down nearly 2% Friday, BRKB down luckily despite banks being allowed to resume stock buybacks. Overall less than I would've liked but avoided a fairly large drawdown by closing long positions and a few successful short positions.
This week will see the inclusion of $TSLA into the SNP. Typically how this works is when a stock is added to the index, another company comes out. The market cap of the new company is usually larger than the exiting one. Since the S&P 500 index is market cap weighted, the weightings of all the other stocks need to come down to make room for the new company.
Tesla will enter the SNP as the 7th largest stock. This has never occurred before.
This means that an absolutely massive amount of equity, $50 Billion +, has to be sold to make room for it.
The table below shows the current weighting of the largest SNP stocks and amount of equity to be sold, with the largest being $AAPL.
The chart below shows the DOM (depth of market) for $AAPL as of yesterday 14:20. The COB is the current order book with the red areas showing a representation of the resting limit orders currently in the market, the actual orders and size are on the side. (This information is typically not available to retail)
Notice the large resting orders of big traders at 128, which is about where the stock stopped yesterday. Above that 129, and then an absolutely huge order at 130.
Big institutions are getting out as everyone is FOMO'ing in.
They will support this market into Friday and buy any small dips in order to keep the buying going whilst they get out.
The 2021 Year-Long Lord of the Rings Read-Along will begin Sunday, January 3, 2021.
This is a year-long read-along, distributing 62 narrative chapters across 52 weeks; the Prologue and Appendices are not included.
A year-long schedule means nobody has to feel rushed or stressed to keep up, but able to take a leisurely approach, savoring every chapter and page. Someone who comes in late, or has to give it up for a while, would have time to catch up. And those new to JRRT's great work would have plenty of time to discuss each chapter to their heart's content.
Any edition of The Lord of the Rings — hardcover, paperback, 3-volume, 1-volume, ebook, audio, or combination thereof — can be used. I will be using these: LOTR one-volume 60th Anniversary Edition and three-volume 60th Anniversary Edition (both HarperCollins, 2014) and one-volume 50th Anniversary Edition NOOK Book (Houghton Mifflin Harcourt, n.d.).
For me, [The Lord of the Rings: A Reader's Companion](https://www.amazon.com/Lord-Rings-Readers-Companion/dp/00075... keep reading on reddit ➡
Everytime I hear someone talking about any of the Oculus headsets, it's almost always negative. However, I used to own a CV1 (I know own a Rift S and I miss my CV1 dearly), so almost all of my VR games are on Oculus. However, I don't even really care about the full finger tracking of the Valve Index.
Should I just stick to my Rift S or toss it into a cardboard box and buy an Index?
|7:00 PM ET||Phoenix Suns||>!105 to 110!<||Detroit Pistons||FINAL-OT||Link||Link|
|7:30 PM ET||Washington Wizards||>!107 to 116!<||Boston Celtics||FINAL||Link||Link|
|7:30 PM ET||Oklahoma City Thunder||>!101 to 89!<||New York Knicks||FINAL||Link||Link|
|7:30 PM ET||Charlotte Hornets||>!118 to 110!<||New Orleans Pelicans||FINAL||Link||Link|
|8:00 PM ET||Orlando Magic||>!90 to 132!<||Houston Rockets||FINAL||Link||Link|
|8:00 PM ET||Brooklyn Nets||>!110 to 115!<||Memphis Grizzlies||FINAL||Link||Link|
|8:00 PM ET||Utah Jazz||>!131 to 118!<||Milwaukee Bucks||FINAL||Link||Link|
|10:00 PM ET||Los Angeles Clippers||>!105 to 115!<||Golden State Warriors||FINAL||Link||[Link|
From the conversations Watame has had in the past about her musical aspirations, the sheep saw trying to join Hololive as a best chance to reach her musical dreams. Those that regularly follow Watame knows she works hard, but for fans that want to help give a bit of a push we are limited in what we can do besides showing up and asking people to give them a watch. Since it's tough to ask people to go out of their way for something they're not familiar with, I thought a few arrows may help you find something you like or simply help you keep track of things if you were already a fan. I also have a more general post of her content. Please give our sheep a listen! ☝🐑
Cloudy Sheep/曇天羊 - Tsunomaki Watame feat.Calliope Mori
[Full Cast/全キャスト]Can You Do the Hololive? / ホロライブ言えるかな？
Hey guys, I’m brand new to VR and received my first headset which is an Index just a couple days ago and I’ve been playing it as much as I can.
There are an overwhelming amount reviews out there nitpicking features and visuals, etc of different headsets. Personally I couldn’t decide which headset I wanted and I was starting to get frustrated looking at pros and cons of different devices. I pulled the trigger on the Index over the G2 and let me tell you that I’m super happy with my decisions. All this talk of god rays and sweets spots, etc can be hard to navigate when you don’t really know what those things even look like or translate to in game. If money isn’t the deciding factor for you, I wanted to chime in and say as a whole the experience from the Index is basically flawless for me, and I think it would make anyone feel over the moon.
TLDR: if money isn’t a deciding factor and you’re lost reading different reviews on different headsets like I was, just grab the index :)
I've had my index for a few weeks and, and after using it excessively in that time, I am already starting to feel like I may not have any issues yet. My tracking is not failing, my screen isn't flickering, I am not getting errorcode messages...I'm even happy I bought it!
I was expecting to be posting about all the technical issues I'm supposed to have, but so far, I have had none. I feel like I'm not getting my money's worth here. I may have no choice but to return it.
Valve, please fix.