Let's say there is a big crash coming, where would you put your money for a safe bet and for a speculative bet (and please don't say bitcoin) ? During the crash of 87, it seems like you could still get a good fixed income yield. Parking it today for 1.5% just doesn't seem that valuable.
The Crash of ’87, from the Wall Street Players Who Lived It
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Re: The Crash of ’87, from the Wall Street Players Who Lived It
#82Let's say there is a big crash coming, where would you put your money for a safe bet and for a speculative bet (and please don't say bitcoin) ? During the crash of 87, it seems like you could still get a good fixed income yield. Parking it today for 1.5% just doesn't seem that valuable.
Complain about Bitcoin and their ilk, but they could (in theory at least) offer some protections against stock market crashes and/or high USD inflation.
Re: The Crash of ’87, from the Wall Street Players Who Lived It
#83Re: The Crash of ’87, from the Wall Street Players Who Lived It
#84A side note, and I'm really hoping someone can explain this. What benefit does the stock market provide to us? I understand investing in companies, but for me, and I'll admit a completely naive person to this whole system, it seems to have taken an 'inbest in company with money to help them succeed', to a 'who cares let's just cut and run to make the best profit'. I'm perfectly willing to take a link to a great expla…
1. https://www.amazon.com/Time-Will-Back-Henry-Hazlitt/dp/16101...
Re: The Crash of ’87, from the Wall Street Players Who Lived It
#85A side note, and I'm really hoping someone can explain this. What benefit does the stock market provide to us? I understand investing in companies, but for me, and I'll admit a completely naive person to this whole system, it seems to have taken an 'inbest in company with money to help them succeed', to a 'who cares let's just cut and run to make the best profit'. I'm perfectly willing to take a link to a great expla…
Stock markets make it easy to sell your stocks- If you can't sell a stock it's just a useless piece of paper.
Re: The Crash of ’87, from the Wall Street Players Who Lived It
#86Let's say there is a big crash coming, where would you put your money for a safe bet and for a speculative bet (and please don't say bitcoin) ? During the crash of 87, it seems like you could still get a good fixed income yield. Parking it today for 1.5% just doesn't seem that valuable.
Another way to think of it is that you are taking one bucket of money that you're parking and making a bet against stocks, or even asset values in general.
You can consider your return for that part of your portfolio the inverse of the market performance. Ex: stocks drop 30% and you buy in at that point, then that is the practical return for that bucket for the year.
Re: The Crash of ’87, from the Wall Street Players Who Lived It
#87Re: The Crash of ’87, from the Wall Street Players Who Lived It
#88Very ominous Breaking News headline at the top of this article right now: "Dow Passes 23,000 for the First Time"
Re: The Crash of ’87, from the Wall Street Players Who Lived It
#89Earlier quoted context omitted.
What I see from this is a while bunch of hand waving to say that 'there are a whole bunch of people between you and x business', despite the fact you can directly purchase their shares(which they offered to gain temporary income to make purchases before their cash flow allowed). I still don't see a reason why these people between you and the business have any useful reason to exist. Unless for gambling, Wich as far a…
I am not sure what you mean by "gambling" in relation to stockmarkets. Third parties offer services like spreads CDO's and binary bets (which actually are gambling). Stock markets act as a market i.e. introducing investors to companies that need capital for example my latest buy was an American Investment trust Tetragon with out a stock market how would I be able to invest in them ?
If I buy APPL today at X, I hope in 3 days it will be Y so I can sell. That's a gamble.
You can use all forms of analysis and assessment to give you more confidence in the gamble, but it's absolutely a gamble.
Re: The Crash of ’87, from the Wall Street Players Who Lived It
#90Earlier quoted context omitted.
*At what point does almost anything else you mentioned help the business?* Firstly, it's a market place. The business and investor need to find each other. To create the market place, you must understand that different investors and different businesses have use cases that you don't need, such as "almost anything else" I mentioned. *Everything else seems likes gambling, imho* One of the dimensions is risk profile. So…
So we do admit the words bet and gambling apply to derivatives, at some point in these discussions. Fine. The reason why folks must be confused is that, non Stock market gambling is seen as a vice and/or crime by much of human society. There are religious edicts and/or laws against this practice in most places. The Stock Market getting a free pass from this view - and most people (including myself) not knowing about…
Then I learned it's all about risk management and absolutely technical analysis trading is gambling. I agree with you, blew my mind!