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Stocks Up $1T Since October

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Re: Stocks Up $1T Since October

#81

Post by manigandham »

WalterBright wrote: post #28
ekianjo wrote: post #22

Earlier quoted context omitted.

> increasing stock prices disproportionately benefit the wealthy and widen the gap between rich and poor. Everything including stock prices disproportionately benefit the wealthy and widen the gap between rich and poor. Not sure what kind of point you are trying to make. When you are much richer than anyone else, you are bound to keep growing your assets at a faster space than anyone else too. It's the nature of comp…

Percentage-wise, it grows at the same rate for each investor.

Sure but capital is the single biggest factor in market returns.

More money means more ways to make more money by taking larger bets, using more leverage, waiting longer to turn losers into winners, and generally absorbing more risk to generate more return.

Re: Stocks Up $1T Since October

#82

Post by robjan »

lliamander wrote: post #79
WalterBright wrote: post #30

Earlier quoted context omitted.

Only in hindsight. It takes extra large intestinal fortitude to invest in a recession. I've generally lacked such guts.

Why so? I admit to being a novice in that area, but unless you are worried things are going to get drastically worse (civil war, etc) won't most stocks get better as the economy leaves the recession?

When you invest $100 and you see it go to $90, $75, $50, $40 at some point the majority of people will "cut their losses" and sell. It's human nature.

Re: Stocks Up $1T Since October

#83

Post by robjan »

manigandham wrote: post #48
throwaway2048 wrote: post #23

Earlier quoted context omitted.

I bet they have televisions too, the sheer audacity

What? The point is that lack of funds for investing is clearly not the problem if they're buying so many lotto tickets.

What is the volume on lotto tickets vs the stock market. Are you really telling me that someone who spends $2 per week (or whatever your lotto price is) on lotto tickets could afford to create a balanced stock portfolio or even buy one stock? Buy ETFs? The buy in price for SPY is US$329. By the time you saved up enough $2/week to buy one unit of that stock it's already too expensive.

Re: Stocks Up $1T Since October

#84

Post by blackrock »

Sometimes, I think there should be a law on how much money, wealth, assets, equities, and properties that people can have.

Say, lock it down at $10 million USD, or to some ratio of the national minimum wage.

Once you get that much, then you must tap out. Live the rest of your life in the sunset, but you can no longer accrue any more money or wealth.

And if you want to accrue more, then you must be in some non-profit business where your mission is to spread the wealth, and to create a better society for all. Then, your maximum level can be bumped up to $100 million (or to some higher ratio of the national minimum wage).

This concept of unbridled and unbounded capitalism has severely gone too far. The rich and the wealthy are seriously misbehaving, and they need to self-regulate and reign in their excesses, before the public gets fed up with their misbehavior, and vote in politicians that will force a policy change on them.

LOL. I say that, and I laugh, because we all know that the politicians are just the fox guarding the hen house, and they’ll never let this happen.

As John McCain said, the people are waging class warfare on the rich. The thing he forgot to mention, is that the rich are slaughtering the rest of us.

Re: Stocks Up $1T Since October

#85

Post by koonsolo »

WalterBright wrote: post #25
tempsy wrote: post #19

Never talk about stocks on HN. You will be downvoted by people who missed out on the 10 year bull market and desperately trying to justify their mistake by saying its a rigged scam that is akin to playing roulette at a casino.

I've been investing for 40 years. It's the same old story - there's no point in investing now, the market is as high as it will ever go. Fast forward a few years, there's regret one didn't invest, but now the market is as high as it will ever go, so not investing again. Rinse, repeat. A lifetime of missed opportunity.

It's all pretty straight forward math, but the problem is that people are not rational. I think it's really a personality trait that you can emotionally distantiate yourself from the numbers.

On the buying side, you could spread out the buying over several chucks to "spread the risk", but again numbers show that the optimal strategy is to buy in 1 go, right now.

Re: Stocks Up $1T Since October

#86

Post by koonsolo »

tempsy wrote: post #31
WalterBright wrote: post #25

Earlier quoted context omitted.

I've been investing for 40 years. It's the same old story - there's no point in investing now, the market is as high as it will ever go. Fast forward a few years, there's regret one didn't invest, but now the market is as high as it will ever go, so not investing again. Rinse, repeat. A lifetime of missed opportunity.

Uh I mean clearly that wasn’t true for last 40 years continuously... Dot com bubble, 9/11, 2008 recession

Assume you went all in during the worst possible time, did you make a loss or gain when you kept it until now?

Re: Stocks Up $1T Since October

#87

Post by manigandham »

robjan wrote: post #83
manigandham wrote: post #48

Earlier quoted context omitted.

What? The point is that lack of funds for investing is clearly not the problem if they're buying so many lotto tickets.

What is the volume on lotto tickets vs the stock market. Are you really telling me that someone who spends $2 per week (or whatever your lotto price is) on lotto tickets could afford to create a balanced stock portfolio or even buy one stock? Buy ETFs? The buy in price for SPY is US$329. By the time you saved up enough $2/week to buy one unit of that stock it's already too expensive.

Robinhood lets you buy for $1 so yes you can start by investing that little. And $2/week from age 18 to 65 will give you $100k by just following the S&P.

If you can buy lotto tickets then you can invest, and if you're buying lotto tickets then you're probably wasting other money too.

Re: Stocks Up $1T Since October

#89

Post by WalterBright »

manigandham wrote: post #81
WalterBright wrote: post #28

Earlier quoted context omitted.

Percentage-wise, it grows at the same rate for each investor.

Sure but capital is the single biggest factor in market returns. More money means more ways to make more money by taking larger bets, using more leverage, waiting longer to turn losers into winners, and generally absorbing more risk to generate more return.

The leverage you can do is the same whether a small or large investor. Check out "margin percentage" on various brokerage sites.

Re: Stocks Up $1T Since October

#90

Post by robjan »

manigandham wrote: post #87
robjan wrote: post #83

Earlier quoted context omitted.

What is the volume on lotto tickets vs the stock market. Are you really telling me that someone who spends $2 per week (or whatever your lotto price is) on lotto tickets could afford to create a balanced stock portfolio or even buy one stock? Buy ETFs? The buy in price for SPY is US$329. By the time you saved up enough $2/week to buy one unit of that stock it's already too expensive.

Robinhood lets you buy for $1 so yes you can start by investing that little. And $2/week from age 18 to 65 will give you $100k by just following the S&P. If you can buy lotto tickets then you can invest, and if you're buying lotto tickets then you're probably wasting other money too.

Please tell me what extrapolation you are basing this on? Even if you dump all the money into SP500 today and backtest that I can't get close to your figures unless I backtest against the recent bull market only.
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