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by linuxftw 2135 days ago
The largest driver of asset inflation in the large caps is 401k's and other retirement/pension plans managed by large entities. I have no choice but to invest my money in my 401k into the stock market or equally risky and lower return corporate bond market.

Individuals investing in ETFs doesn't move the needle. Fund managers seem to be part of some cartel, pumping various asset groups at various times. We're just along for the ride.

2 comments

>> The largest driver of asset inflation in the large caps is 401k's and other retirement/pension plans managed by large entities.

Yep. If covid had put 40 million US white collar people on unemployment instead of hourly folks, the market would have crashed hard as the monthly influx of money dropped and some people started pulling money out early to get by.

I know I am an outlier in terms of a high savings ratio due to a lack of things to want that would be worth it in my situation but I still find it funny how it 401ks are the big ones when the contributions are so limited.