I read this morning about some well known (but not to me) investor who called Millennial investors ‘dumb’ because they are paying too much for stocks and causing these stocks to be overvalued which I think is code for, “they are making me pay more more and lose more” on accounts of them turning the price up but it be disproportionate to the actual value of the stock.
Anyway, I am not a savvy investor but I do like to read in the markets because I think reading market news is more telling about what is really going on although I do believe the opinion pieces in the news have an impact on which way the market will go.
What I can’t seem to really understand is that these ‘new dumb’ investors actually do seem to know what they are doing…taking back what is theirs and shorting big market investors. lol. If they aren’t then someone is and that would then be the big market investors who themselves are overvaluing stocks and then shorting to making room for more growth.
The way I see it is this pretty consistent HIGHS and LOWS over the last few months are people making short gains… I don’t think this is the right use of the term Short Seller because I don’t think the people doing it are using borrowed money. I think they are investing their own money and making huge gains.
The trick as I see it is to convince people who are looking for good purchases that THIS or THAT stock will produce good gains and then when it looks too good to be true, they sell it and leave you wondering what happened. Really, there is no need to have so many market sell offs to to such proportions as if the market is repeatedly crashing in a groundhogs day scenario. It just doesn’t make sense.
My hunch is that there is a circle inside traders doing this. For whatever reason, the market is not doing anything normal. I think part of it’s rebound is due to hopes for a better future (and I think that’s a good outlook) but for the most part, I do think that there are a handful of extremely wealthy people who are the ones manipulating the market for short but high gains and in their circle, they say when to sell.
I feel sure that this isn’t something new. Martha Stewart, after all, did some time for insider trading but where does this trail lead? In 2008, I must say that I was really impressed with those who hedged their bets against the housing bubble and made millions off the failures of the country.
As terrible as it sounds to be a shark like that, from an investments perspective, why would a person NOT do that IF they felt that certain that their analysis was correct? The magic trick is to know when and where.
For tech, it was pretty obvious that it was a bubble. Some people made a lot of money recently and that is good for them but for the regular investor, especially those new to it and using online trading platforms, it probably came as a shock.
I remember reading one story about a young person who invested using Robinhood and committed suicide because he lost all his money. I guess he invested all his money into buying oil believing he was buying by the barrel or some weird thing that makes you wonder what in the world he was thinking. How much the person invested was not detailed but I would assume that it was a lot. Well, a lot depending on where you are financially that is. I mean, he could have been poor taking a huge risk with a little bit of what he had left. Which in all honesty, it makes the most sense.
IF that was the case, then of course that is very troubling and telling about where we are as a country with respect to prosperity. Covid-19 doesn’t help along the matters either. It also doesn’t help that the president is a cheat and a liar and is not giving people stimulus that they desperately need so in this case, I would consider the death of that investor the blood of the country. I know it’s wrong to blame his death on all of us but it says a lot about what people actually struggle with and it is really heartbreaking to know.
Now, I know wealthy people don’t really care. They live in their own bubble, their own world and when outsiders step into their neighborhood, they get pretty pissed off and start to derail things because to them, everything is theirs. All the money is theirs, the country is theirs, the land is theirs because let’s be real, they can buy it because we are, unfortunately, just a tag.
We are essentially just workers in their communist/aristocratic society that they ‘market’ as capitalism but it’s not. They can call it capitalism and pretend that socialisms is bad for the world but it’s not true.
When the working class pays their dues and the wealthy reap the rewards with very little going back to the social class, then it is NOT capitalism. When the aristocrats, the elites, the filthy rich and the oligarchs decide that the social class should only make a minimum wage (because they are forced to by the government) and that unions are bad, what they are saying is they don’t feel like they need to pay the social class a living wage, that the social class should fend for themselves, pay their taxes, pay for their overpriced healthcare, buy the crap food, should not be entitled to public education…
All the things they say are capitalist really aren’t. It’s like there is the very fine line, or they are towing the line between Capitalism and Communism with social unrest/revolution being the great divide which is where I think we are as a country. And don’t confuse that with the idea that America is socialist. What I mean by this is that there is conflict between two distinct social classes; us and the elite.
Unions are not socialist. Unions are meant to negotiate working terms so that we don’t end up working for nothing (basically nothing) like Right to Work states do. Without Unions, people have no power to negotiate the terms of their services. This is something that ALL wealthy people love to utilize so they can get the best benefit or they walk away from the deal.
It’s the same thing when it comes to work and they feel pressed by Unions because they can say decide that they will not work if their needs are not being met. This is a good thing for all working class people (social class) because without it, you remain at the mercy of minimum wage jobs and no benefits which means you end up like said guy who committed suicide because he lost what little money he had left.
It’s also a pretty strange thing to see average people calling out China for being communist or Russia for being communist even though America is getting very close to being structure the same way.
When the people remain at the mercy of their government, then we are communist.
When the government is at the mercy of the people, it is a democracy.