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'My life's screwed': Korean investors stress out after AI bubble bursts

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Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#31

Post by nostrademons »

qgin wrote: post #30
vivzkestrel wrote: post #27

- why is everyone suddenly selling - what changed in the last week that did not change in the last 6 months?

Markets don’t always need an external change to drop. Sometimes it’s just part of the same price discovery process that ran the price up early on.

Price is the derivative of position changes - it reflects supply & demand in the market at that moment, which is often highest when everyone is entering the position.

When people are buying an asset speculatively, they often all enter the market at once, which drives up the price spectacularly. But then once they've all bought, what happens? That demand drops off; everyone who wants to own memory chip stocks already does. You're left with the value investors who already held and bought early, who see that their asset is now wildly overpriced and want to get rid of it. So the price then drops until that supply drops off and you reach a new equilibrium, often exacerbated by the speculators who see their position evaporate and want to get out.

Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#32

Post by bigfishrunning »

Archio wrote: post #19
bigfishrunning wrote: post #12

Earlier quoted context omitted.

But if an investment doesn't pan out, and your response is "My life's screwed", you couldn't afford the investment either. "high risk" is right in the name -- the win isn't guaranteed. If you are in the unfortunate position of not being able to afford a nice home, live somewhere less nice and try to build savings so that some day your children can afford a nice home.

>But if you get caught stealing bread, and your response is "My life's screwed", you couldn't afford the risk either. >If you are in the unfortunate position of not being able to afford bread, eat something less expensive and try to build savings so that some day your children can afford bread. See how this works when you conveniently dismiss the effects of severe structural problems in society as evidence of poor fi…

I recognize that there's something I'm severely misunderstanding here. In order to "win big" in the stock market, you generally need to invest big -- i would assume people investing big in the stock market aren't literally homeless; they likely rent some kind of room or apartment. Equivocating it to "stealing bread" seems a little extreme.

If the supply/demand curve of housing is so extremely upside-down that the only way to get ahead of it is gambling, then maybe they shouldn't be increasing the population -- at the risk of sounding a bit heartless, it seems to me like the only real choice is to leave; a peninsula that's locked from the mainland by an enemy like north Korea means that resources must be too scarce for their population.

Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#33

Post by lotsofpulp »

ratelimitsteve wrote: post #28
louiereederson wrote: post #21

> Part of the problem was regulators’ decision in late May to approve 16 single-stock leveraged ETFs tracking Samsung and SK Hynix, which have been blamed for amplifying moves in indices and individual stocks. Baffling that this was approved, though less so if you don't assume the regulator has the general market participant's interests in mind

we watched them change the rules in the US to force indexers to provide exit liquidity for the spacex IPO blunder via your dad's 401k. capturing the regulators is just part of what finance does.

Who is we and them? 1 index chose to change the rules, Nasdaq 100, and it’s in less than 1% of retirement funds.

Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#34

Post by lotsofpulp »

duttish wrote: post #20
bigfishrunning wrote: post #12

Earlier quoted context omitted.

But if an investment doesn't pan out, and your response is "My life's screwed", you couldn't afford the investment either. "high risk" is right in the name -- the win isn't guaranteed. If you are in the unfortunate position of not being able to afford a nice home, live somewhere less nice and try to build savings so that some day your children can afford a nice home.

Now I'm on very thin ice and just based on youtube videos so if someone from South Korea reads this feel free to correct me. As I understand it the order of things for men* in SK is 1) housing 2) marriage 3) children No housing means no wife means no children to afford a nicer home. So, they're incentivised to take big risks. But I'm going to step out of this minefield now with the hope of someone who actually knows…

That seems the same as anywhere else in the world where women have the option to be independent. It even applies for many other species.

Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#35

Post by marcusverus »

one33seven wrote: post #18
bigfishrunning wrote: post #13

Earlier quoted context omitted.

Young people who can't afford the risk, and don't bother to understand that fact.

Well apparently they don't really have a choice and with this context it's less funny

> Well apparently they don't really have a choice

The notion that poor circumstances somehow justify poor choices is extremely counterproductive, as the context of this thread should make abundantly clear.

Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#36

Post by mbmbn »

one33seven wrote: post #18
bigfishrunning wrote: post #13

Earlier quoted context omitted.

Young people who can't afford the risk, and don't bother to understand that fact.

Well apparently they don't really have a choice and with this context it's less funny

> they don’t really have a choice

This kind of discourse is so intellectually poor…

Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#37

Post by quickthrowman »

evolve2k wrote: post #9
thelastgallon wrote: post #4

> nearly half of its 880,000 clients who bought Samsung shares were now sitting on losses, while nearly 70 per cent of its 408,000 investors in SK Hynix were also in the red. > Margin debt, which hit a record Won38.6tn ($27bn) last month as investors borrowed to amplify bets, has dropped to Won33.2tn after a wave of forced liquidations during the recent rout. Looks like there is a lot of leverage left.

How tightly regulated is investment margin lending in the US?

You can get SPAN margin if you have enough money, margin is calculated dynamically based on implied volatility and other metrics. I’m not very familiar with how it works, I have a regular margin account.

Standard margin accounts allow 2x overnight leverage and 4x day trade leverage (must close below 2x leverage at market close)

Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#38

Post by pixel_popping »

one33seven wrote: post #6

oh those poor rich people that lost a bet, I feel so sad for them :(

It's all relative, you seem to think that rich people can't get "as depressed" as poor people but you are genuinely wrong, rich people also commit suicide, money isn't everything and for the most part, people have worked quite hard and smartly to become rich, such a basic take.

PS (ready for the downvotes): A ton of people are not wealthy by choice as well, I don't want to over generalize because this isn't true for all, but a LOT could master a new topic every month by just stopping Instagram for 1 hour a day and instead use that time to study and make money, so what, if they start in the direction of building wealth, suddenly they are assholes?

Re: 'My life's screwed': Korean investors stress out after AI bubble bursts

#40

Post by dormento »

aruametello wrote: post #23
reddguard wrote: post #5

Hyped Korean techbros went from “Let’s gooo!” to “Aww nooooooo!” faster than a StarCraft 2 match

faster than a zergling early base rush.

Ah, the gentlemanly 6 pool But seriously, betting on stocks is not an "investment". This is like the first thing you gotta learn in order to not get gently-caressed over by the market. My rule of thumb: if it's not insured somehow, its just speculation (which can be profitable, but never an "investment").
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