Index funds will sell if the valuation drop... So they only in general prop up m... | Hacker News

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		Ekaros 8 months ago \| parent \| context \| favorite \| on: Even Tesla's Insurance Arm Is Getting Wrecked Index funds will sell if the valuation drop... So they only in general prop up market. But I think hedge funds are the real players here. Tesla is one of their successful investments. So placing even more bets there to keep numbers looking good is one possible play...

voidspark 8 months ago [–]

> Index funds will sell if the valuation drop

No. The big index funds fully replicate the index.

They will drop Tesla only if Tesla is dropped from the index.

Tesla is currently up by 1150% since 2019.

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