Are there any tools to take your existing porfolio and play out scenarios like this? Eg positions in 100+ stocks aggregated from 401k, Roth, 529, etc and see best guesses as to how I'm exposed?
How Much Wealth an AI Stock Market Crash Could Destroy
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Re: How Much Wealth an AI Stock Market Crash Could Destroy
#12https://archive.md/EzGW2 - A drop in nominal values on the same scale as the dotcom bust would wipe out $16T, or 8% of American household wealth. Foreign investors would lose $7T.
The wealthiest 10% of Americans own 93% of stocks even with market participation at a record high - https://finance.yahoo.com/news/wealthiest-10-americans-own-9... - January 10th, 2024 > The richest Americans own the vast majority of the US stock market, according to Fed data. The top 10% of Americans held 93% of all stocks, the highest level ever recorded. Meanwhile, the bottom 50% of Americans held just 1% of all s…
You have to use caution when interpreting those numbers. The bottom 50% doesn't have much wealth, so a big chunk of their wealth will decrease. It also tends to be unevenly distributed, so for those trying to improve their situation (think someone 60 years old with $50K in retirement savings), it would hit really hard. Plus a lot of those people would lose their jobs when the highest 10% cut back on spending.
Re: How Much Wealth an AI Stock Market Crash Could Destroy
#13I like the correction, specifically how it ends with "sorry."
Re: How Much Wealth an AI Stock Market Crash Could Destroy
#14Im sure the wealthy find a way to socialize these “losses”. Also what a shit headline. There’s no wealth destroyed, it’s all just numbers go up and down. But until you sell you haven’t lost any money, have you?
Maybe a distinction without a difference. If my "numbers go down" it follows that so does my spending, investing, etc.
Re: How Much Wealth an AI Stock Market Crash Could Destroy
#15I've never felt right about the framing of "destroying wealth" when stock prices go to some new number. If anything, the word "reflecting" seems more applicable?
Re: How Much Wealth an AI Stock Market Crash Could Destroy
#16https://archive.md/EzGW2 - A drop in nominal values on the same scale as the dotcom bust would wipe out $16T, or 8% of American household wealth. Foreign investors would lose $7T.
What does "wipe out" mean? Money doesn't disappear when someone sells.
Re: How Much Wealth an AI Stock Market Crash Could Destroy
#17I'm just waiting for the next massive knee jerk reaction in the stock market to start seriously investing again. AI is not going anywhere even if there is a bubble but people are going to make stupid narratives on it being over for Nvidia and tech.
Re: How Much Wealth an AI Stock Market Crash Could Destroy
#18https://archive.md/EzGW2 - A drop in nominal values on the same scale as the dotcom bust would wipe out $16T, or 8% of American household wealth. Foreign investors would lose $7T.
The wealthiest 10% of Americans own 93% of stocks even with market participation at a record high - https://finance.yahoo.com/news/wealthiest-10-americans-own-9... - January 10th, 2024 > The richest Americans own the vast majority of the US stock market, according to Fed data. The top 10% of Americans held 93% of all stocks, the highest level ever recorded. Meanwhile, the bottom 50% of Americans held just 1% of all s…
- The above totals do not include indirect holdings-such as investments via pension funds and life-insurance companies-of which American households have some $20T.
Re: How Much Wealth an AI Stock Market Crash Could Destroy
#19Im sure the wealthy find a way to socialize these “losses”. Also what a shit headline. There’s no wealth destroyed, it’s all just numbers go up and down. But until you sell you haven’t lost any money, have you?
Without buying and selling, there is no change in price. Obviously, wealth will therefore be destroyed - just not that of buy-and-hold people.
I have no sympathy for the uber-wealthy, but claiming no one's wealth will be affected is ridiculous.
Re: How Much Wealth an AI Stock Market Crash Could Destroy
#20None. The prices are estimates of value not the value itself.