61–70 of 94 posts
My instant thought was “NFTs”!! NFTs are effectively the new reading cards. It’s gonna explode then implode, but I know a lot of people are getting into it.
I can’t hold a NFT. I don’t see people in 100 years talking about a rare cat meme NFT like we talk about a 100 year old antique coffee grinder. But hey, I could be wrong.
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Even if there were a direct relationship between printing and inflation, this wouldn't make sense. Pokemon cards aren't up 25%, which is what you'd expect if dollars were worth 80% as much and everything rose to accommodate. Pokemon cards are up way way way more than 25%.
Why would that be the case? Inflation doesn't put 25% more dollars in the pockets of people willing to buy Pokemon cards. It's distributed differently. Plus the existence of high inflation makes people demand inflation hedges way more, so why wouldn't they go up in price faster than inflation?
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You mean like Tesla? Or even any of the top tech companies?
Not any specific company. The person I responded to implied that equity shares are not being traded according to if they were making money or will make money. But from this list, and the net profit and net profit margin figures, they seem to be mostly ordered correctly. https://companiesmarketcap.com/
Nevertheless:
"The basic issue is that right now everything is dumb. You can complain about that, or you can embrace it. In investing in 2021, “my channel checks and fundamental modeling suggest that this company will grow earnings faster than the market expects so I will buy it with a price target 20% above today’s price” might sound smarter than “this company’s chief executive officer just tweeted a picture of a dog at Elon Musk so I’m going to buy out-of-the-money call options expiring Friday because the stock will go up 200% today,” but the latter approach happens to work better right now.
https://www.bloomberg.com/opinion/articles/2021-11-04/macy-s...
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Not any specific company. The person I responded to implied that equity shares are not being traded according to if they were making money or will make money. But from this list, and the net profit and net profit margin figures, they seem to be mostly ordered correctly. https://companiesmarketcap.com/
I was (mostly) joking! Fundamentals are still somewhat relevant. Nevertheless: "The basic issue is that right now everything is dumb. You can complain about that, or you can embrace it. In investing in 2021, “my channel checks and fundamental modeling suggest that this company will grow earnings faster than the market expects so I will buy it with a price target 20% above today’s price” might sound smarter than “this…
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Sure, that was just one (tongue-in-cheek) example. What about stocks?
Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Trading cards (and cryptocurrencies) are not like that. You can only make money if someone else is willing to pay more for it.
Correct me if I'm wrong, as I don't know much about stocks, but doesn't that require the company to have/pay out dividends? Otherwise you do require others to buy the stock when you sell it.
> Trading cards (and cryptocurrencies) are not like that
Don't know enough about trading cards to say that you're incorrect, but you're definitely wrong about cryptocurrencies. You can do various things to earn more without loosing your current amount, from staking (Polkadot), loaning (Compound) to getting rewarded for providing liquidity (Uniswap) or for doing nothing at all (Algorand).
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Sure, that was just one (tongue-in-cheek) example. What about stocks?
Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Trading cards (and cryptocurrencies) are not like that. You can only make money if someone else is willing to pay more for it.
Earlier quoted context omitted.
Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Trading cards (and cryptocurrencies) are not like that. You can only make money if someone else is willing to pay more for it.
> Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Correct me if I'm wrong, as I don't know much about stocks, but doesn't that require the company to have/pay out dividends? Ot…
If you make money along the way, as opposed to when you sell, then yes. The prevailing corporate playbook seems to prefer stock buybacks over dividends, which accomplishes roughly the same thing but only triggers tax liabilities for the stockholders who “cash out” by selling.
Obviously there is a limit to this process, but in a frictionless world of perfect financial knowledge a stockholder would always prefer the buyback approach since it defers taxes on the gains as long as possible.
From scanning this, it sounds like the author is specifically talking about sports trading cards, most characterized by baseball cards. This market certainly went crazy price-wise but then, as the author pointed out, tanked. It basically tanked because everyone started collecting the cards. Like any collectible market, it mainly took off to begin with because no one was collecting these things and keeping them in min…
NFTs are collectables and subject to the same trajectory.
You create an NFT sell it to yourself, the price tanks you deduct it from your taxes and then sit on a pile of USD coin in another wallet that no one knows about.
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I can’t hold a NFT. I don’t see people in 100 years talking about a rare cat meme NFT like we talk about a 100 year old antique coffee grinder. But hey, I could be wrong.
Not only can’t you hold it, but anyone can trivially get their own identical copy of it.