• Brave Little Hitachi Wand@feddit.uk
    link
    fedilink
    English
    arrow-up
    3
    ·
    14 hours ago

    Unfortunately, stocks tend to move in sympathy with each other due to various factors, such as large ETFs and algorithmic trading. Natural price action is kind of broken at the moment.

    • Zink@programming.dev
      link
      fedilink
      English
      arrow-up
      4
      ·
      13 hours ago

      Absolutely, plus since index funds are cap weighted, ordinary retirement fund investing folks are very much vulnerable to it.

      If I pull up VTSAX (vanguard total stock market index fund) what I find is…

      Sectors: Technology is 38% of the fund and I see 11 sectors listed.

      Top 10equity holdings, in order from the top:

      NVDA MSFT AAPL AMZN META AVGO (Broadcom) GOOGL TSLA GOOG BRK.B (Almost like its own index fund)

      This is fine!!