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Still wouldn't have helped much when the market drops over 900 points in a single day.


Sure they do - index funds help exactly the same way on a down market day as an up market day. They make sure you do a little bit better than the average investor does.



I'm not saying I understand this stuff inside and out, but that doesn't sound realistic.

If the index reflects a certain group of stocks, and stocks take a nose dive, the index would dive as well. Maybe not as bad as the overall market, but a dive none-the-less.

Am I missing some basic concept of index funds?
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