Investors are running out of money - and that's bad news for stocks.

jseverson

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Quote from: wantjokull on November 09, 2017, 11:05:04 PM

I don’t understand why this is a concern for the crypto currency world. I mean if they are running out of the money then they might be taking out the money and putting it into the bitcoin per se? That could be possibility as bitcoin rose very hard this week and also the fork was not reason as we can see after cancellation also the bitcoin stands at the same high as it was yesterday. Besides this if the stocks are falling and people are not getting into crypto the it could be crisis for sure and house of cards may not tell the truth as always. This could affect the economy of the bitcoin as well by producing the fear into crypto holders mind that crisis can affect the crypto currencies too. So better play safe these days and such news are always taking bitcoin prices up and down. So we will see where this one take it to.

Well, the cryptocurrency scene could very well mimic this development. We're experiencing a very bullish run and we might reach a point where people think Bitcoin is too expensive to buy. For a market that is completely dictated by supply and demand, with nothing to bail it out, it could be disastrous. Far more disastrous than it would be for the stock market, even.

wantjokull

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I don’t understand why this is a concern for the crypto currency world. I mean if they are running out of the money then they might be taking out the money and putting it into the bitcoin per se? That could be possibility as bitcoin rose very hard this week and also the fork was not reason as we can see after cancellation also the bitcoin stands at the same high as it was yesterday. Besides this if the stocks are falling and people are not getting into crypto the it could be crisis for sure and house of cards may not tell the truth as always. This could affect the economy of the bitcoin as well by producing the fear into crypto holders mind that crisis can affect the crypto currencies too. So better play safe these days and such news are always taking bitcoin prices up and down. So we will see where this one take it to.

amishmanish

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Quote from: pinkflower on November 06, 2017, 11:46:05 PM

Quote from: Mometaskers on November 06, 2017, 09:17:28 AM

https://www.youtube.com/watch?v=qNFOdbxvv1Y

I have low understanding of economics but I believe we should be watching out for this. I have little idea why investors are "running out money" and where those are all being diverted. Last time something like this happened though, a crash followed. They just kept telling people "It's fine, nothing to worry about" and then the house of cards collapse and we're left out in the cold while they were able to get their money out prior to it.

Its a bubble. The US stock market is in its all time highs and unless theres new money coming in then it cant go any higher and crash. But its normal and its an unavoidable part of the economic cycle. You also want the crash to happen because its another chance for you to create wealth by taking advantage of the low prices.

The cycle creates wealth only for a niche group of investors who either know the symptoms of an impending crash or outright insider information. I know that their strict regulations against it but hugely doubt that people don't benefit from it. Not everybody gets caught right.

So, this group of niche investors, traders make their money before the crash and stock up cheap as a majority of small investors then sell at a loss. How else could you explain traders getting richer and richer, getting higher bonuses while most people keep losing their savings. Its money and it has to be a zero-sum game. Sure some of the common folks profit from it but i think the majority loses in the short term.

Stocks go up for common people only in the long term and then the returns aren't that great when adjusted to inflation. It works pretty well i think, trickle down economics. The smaller people only get the trickle..! Huh

uszaty43

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When will people understand that stocks are a huge bubble too? Most of those people are always talking trash about bitcoin saying that it is a huge bubble and that it will collapse in X time, it is insane, but i dont think that people are really running out of money, you know how does this system works, they will always find a way out to make profit from EVERYTHING, so it is normal if you see it without an ethical view.
but those guys are always finding a problem for everything, i dont understand them at all.

pinkflower

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Quote from: Mometaskers on November 06, 2017, 09:17:28 AM

https://www.youtube.com/watch?v=qNFOdbxvv1Y

I have low understanding of economics but I believe we should be watching out for this. I have little idea why investors are "running out money" and where those are all being diverted. Last time something like this happened though, a crash followed. They just kept telling people "It's fine, nothing to worry about" and then the house of cards collapse and we're left out in the cold while they were able to get their money out prior to it.

Its a bubble. The US stock market is in its all time highs and unless theres new money coming in then it cant go any higher and crash. But its normal and its an unavoidable part of the economic cycle. You also want the crash to happen because its another chance for you to create wealth by taking advantage of the low prices.

darthmaul

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Quote

There are several forces driving this. Part of it is a hunt for higher returns, because of negative rates, nearly $11 trillion or roughly one-quarter, of global fixed-income assets yielded below zero at the end of 2016, according to Bank of America Merrill Lynch.

This is why decentralisation could collapse at any given time while making the journey of monetisation of funds. I mean what were the chances of collapsing the big financial institutes like central banks and debentures who handle the whole money printing machine?

They sucked hard when they release the notice in the market and they had to pull back from the stocks in the Wall Street. Thats why we saw the upward trend for bitcoin recently. This was indirectly related to bitcoin exchange because a CEO of Wall Street company made statement that he supports the bitcoin is positive ways. This has to do something with it and it did.

squatz1

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Flying Hellfish is a Commie

People aren't running out of money, that's not true. There is still a ton of money being pumped into investments such as more and more people entering the workforce so they're going to be putting more into 401k's and other investment opprotunities so the notion that investors are running out of money isn't true. I'd think that they'd be having TOO much money to invest, as banks are probably happily giving out huge margin loans to these people at the moment.

Not true.....

Hydrogen

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It has been said that the federal reserve buys stocks as a segment of economic stimulus. This has been an ongoing thing spanning years. Here's an example.

Quote

Central Banks' Massive Incursion Into Buying Stocks

A recent article in the Wall Street Journal details the reason behind why central banks are buying stocks. There are several forces driving this. Part of it is a hunt for higher returns, because of negative rates, nearly $11 trillion or roughly one-quarter, of global fixed-income assets yielded below zero at the end of 2016, according to Bank of America Merrill Lynch. This means some are investing a bigger share of their growing foreign-exchange reserves in equities, corporate bonds, and other riskier assets while others are doing so merely to prop up their stock market in an effort to create a wealth effect, hoping it will cause consumers to feel better and go out and spend which will propel the economy forward. This should not be confused with buying foreign currencies or with quantitative easing programs, under which central banks like the Federal Reserve have already bought trillions of dollars' worth of assets to boost growth and inflation.

https://seekingalpha.com/article/4064824-central-banks-massive-incursion-buying-stocks

Its not investors who are running out of money. Its more strongly linked to deficits, debt and central banks no longer buying stocks due to budgetary constraints. The state also tried to subsidize mortgages to a degree to prevent the subprime mortgage crisis.

All it means is a decent portion of the recent rally in the stock market is state subsidized. Part of the demand driving prices up come from the government. If the government runs out of money, there could be a negative price correction or crash.

Mometaskers

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https://www.youtube.com/watch?v=qNFOdbxvv1Y

I have low understanding of economics but I believe we should be watching out for this. I have little idea why investors are "running out money" and where those are all being diverted. Last time something like this happened though, a crash followed. They just kept telling people "It's fine, nothing to worry about" and then the house of cards collapse and we're left out in the cold while they were able to get their money out prior to it.

Topic: Investors are running out of money - and that's bad news for stocks. (Read 336 times)