Where is the money coming from?

[farmerjohn1324]

I've noticed you don't like to be challenged on your opinions. By going long GLD you are short the market (more or less) or short USD (more or less).

Everything is sort of crazy right now and something _will_ break. You don't know what it is. So trade what you see.

Actually I just find YOU extremely annoying. Notice how I respond to other people differently.

I think you don't even understand the question.

 

[Scataphagos]

Why can't rich people/institutions choose to keep their wealth in cash? How do you know there isn't billions or trillions of dollars of wealth stored in cash right now?

Assuming you're still talking about "sideline" cash.... they sold their stocks to acquire cash. But that cash was transferred to the sellers of that stock. The cash is still in play but with a different player.

 

[richDude]

Is there a way to measure how much "sideline cash" exists?

Is this reflected in Forex market at all?

household checking account balances, corporate balance sheet cash, house hold debt service level to income ratio... all is public info.

 

[farmerjohn1324]

There is no such thing as "sideline cash" in any real sense. The only way cash is reduced is when it actually LEAVES the marketplace... as in moving to real estate, spent on drugs or other. Otherwise, cash just "changes hands" but is still in play.

According to this site, there's about 4 trillion in M1 money supply.

If people decided to start investing/speculating in gold, stocks, bonds, etc., would that not reduce the M1 and increase everything else?

 

[nooby_mcnoob]

Actually I just find YOU extremely annoying. Notice how I respond to other people differently.

I think you don't even understand the question.

Wait. Are you telling me the guy who hasn't invested a single dime is going to understand the market through a forum post?

LOL

 

[farmerjohn1324]

household checking account balances, corporate balance sheet cash, house hold debt service level to income ratio... all is public info.

M1 money supply best measure?

 

[richDude]

new year 2020, love is in the air?

 

[farmerjohn1324]

Assuming you're still talking about "sideline" cash.... they sold their stocks to acquire cash. But that cash was transferred to the sellers of that stock. The cash is still in play but with a different player.

Ok you're right.

 

[Scataphagos]

According to this site, there's about 4 trillion in M1 money supply.

Little of that is in trading accounts... chomping at the bit for the right opportunity to buy. And even it it were, it would simply be transferred to another player. IOW... "sideline cash" never goes away... just changes hands.

 

[farmerjohn1324]

new year 2020, love is in the air?

Read my post #3, then read his post saying I've never invested a dime.

There is no point in responding to him.