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I am not talking about 90% of fund managers or funds.
I am suggesting that there are some funds which consistently beat the index and which have beaten the index over a 5 or 10 year period. eg Colonial First State Imputation Fund (Rated ***** by Morningstar.)
I was also suggesting that the very nature of index funds could cause certain shares to become overbought or oversold.I just can't see the point in selling down BHP when it dropped from $12 to $10.40. Any fool could see that was when you should be buying. And vice versa BHP from $18 to $20. There are a million examples out there, recent performance of NCP and TLS for instance.
In the extreme case that index funds become too large, they will cause wild whipsaws in the market and even possibly a recession/correction.
TMFGoogly please feel free to address the other points I raise in this post and my original post instead of addressing one statement. I would have been disappointed and surprised if no-one disagreed with me.
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