Hi Thomas, thanks for your comment. the idea is if we have no idea which big corporations of today will be performing in 10 years, that means we also don’t know how the stock price of that corporation will perform over the next 10 years. Index funds take that out of the equation. If Netflix falls off a cliff tomorrow, the S&P 500 index funds will rebalance to correct that. If you simply owned a bunch of Netflix stock you would be SOL

Economic policy wonk by day. Personal finance writer by night. I write about investing, debt, and all things related to money. Editor of Making of a Millionaire

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