I thought stocks always go up?
- Thread starter Bugsy
- Start date
Stonks have gone up for the last 100 years because of....
1. $25-ish $TRILLION the government spent more than taxes collected
2. The Fed has devalued the $USD by ~95% over that time
(Which is also why a $.20 movie ticket from my youth now costs $10.)
That's quite a "tail wind".
A snapshot of inflation + currency devaluation...
When I was a kid, I and 3 of my cousins could go to the movies on Saturday... a double feature, no less... for $1.00. That's not "$1 each", but rather $1 for the 4 of us... $.20 for the movie ticket and $.05 for a bag of popcorn. What does it cost for a family of 4 (plus popcorn) to go to the movies today? $80??
We in America have more-or-less survived the 1st 1:100 devaluation of our money... where a movie ticket went from $.20 to $10. Are we going to survive the NEXT 1:100 devaluation where that same $10 movie ticket inflates to $1000?
1. $25-ish $TRILLION the government spent more than taxes collected
2. The Fed has devalued the $USD by ~95% over that time
(Which is also why a $.20 movie ticket from my youth now costs $10.)
That's quite a "tail wind".
A snapshot of inflation + currency devaluation...
When I was a kid, I and 3 of my cousins could go to the movies on Saturday... a double feature, no less... for $1.00. That's not "$1 each", but rather $1 for the 4 of us... $.20 for the movie ticket and $.05 for a bag of popcorn. What does it cost for a family of 4 (plus popcorn) to go to the movies today? $80??
We in America have more-or-less survived the 1st 1:100 devaluation of our money... where a movie ticket went from $.20 to $10. Are we going to survive the NEXT 1:100 devaluation where that same $10 movie ticket inflates to $1000?
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How old are you, 110?
The strain of the markets make me look like it... but actually, only 39.
Stocks go up in the longterm. What is longterm? Try 50 years. People forget that even if you are investing and more so, trading, you still have to have risk management and proper position sizing. Properly placed stop losses will save you from huge losses 80% of the time. Even with these huge drops, I got out of BGFV and ERIC with small losses. Still have my other positions I am hanging on.
Its too funny to see how quickly the psychology of this market has changed in less than 48 hours, thats the problem when you have complete complacency in a market that only goes up. Is the run over? Nope. A few more days like this and fed will use more magic so no worries. The run will continue but it won't last as many new investors into this market think it will. This last week alone 6 people have been talking stocks, 6. And these are people that probably didn't even know what a stock was before 2020. The amount of new investors piling into this market is greater than the dot com era. And with these new people trading thinking stocks only go up, well they are in for a very very very rude awakening.
An interesting notion...
At some point, the market will deflect the Fed "jumping in"... the Fed's cache will have finally worn thin... and will be a watershed in both the markets and "monetary things". Of course, I don't know how close we are to that point.
%%How old are you, 110?
LOL, movies seldom cost me anywhere near all his prices.
STAR Wars came on TV,2; give it enough time.
Stuff still going UP today/inverse etfs.LOL……………………………………………………………………………...
interesting. no idea how big these "investors" positions are but, the market is still really really high, unless they just bought this week how can literally a couple down days push them into negative territory???
wtf are they even talking about???
ahhh I had to re-read it. these "investors" seem to be adding positions daily. he says he just added 5 ****ing tickers ! I know daytraders that dont trade that many tickers!
i wish everyone luck.