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Old 09-2-2020, 06:23 PM   #20
trumaestro
I don't get no respect
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Join Date: Jun 2006
Age: 32
Posts: 1,332
Default Re: Stock Market Chit Chat

Quote:
Originally Posted by mi40 View Post
funnily enough i think the current state of the market is bringing in people who are not willing to learn about the fundamentals or technicals behind 'trading and investing' and they will permanently take their leave once they get burned. i'm already seeing a lot of it happen after tesla drew down yesterday and today. people can't even seem to stomach 2 days of fat red candles going downwards.
Sounds like someone needs to explain the concept of risk to people before they invest.

Do you think that this is because of a rise in investment social media (like Keemstar shown above), or more easy to use apps like RobinHood opening the market to more people? (Probably both)

Quote:
Originally Posted by mi40 View Post
and as for the huge share price growth, the market looks forwards.. sometimes too forwards. like zoom for example. i don't think the market actually cares about profit anymore. because if they did, intel should be way higher, but it's not - because people only look at the potential room for growth. the only exception to 'potential growth' would be megacaps like apple/amazon where there is still unlimited room for growth based on their business model & scale.
I think that one force you won't see too much in just the stock market is still going to be interest rates. Remember, companies raise capital either through selling shares or taking on/issuing debt. Debt has been so cheap for so long there is little incentive to not take more debt. Debt magnifies returns for the shares you do sell too. The long term effect is a constant upward pressure on share prices. Investors want dividends too, but a limited number of shares pushes prices up.

As far as future growth, I think more investors need to look at what happened with the We company. Grew to be "worth" billions, but had no profits and died VERY quick. It emphasizes the need to understand both financial statements and the business model you'll be investing in. Also judge executives. I like this video on it.


Quote:
Originally Posted by mi40 View Post
and yeah, that short-term gains tax is going to suck. especially as a california resident. i'm thinking of moving to someplace like washington if i get bigger and bigger.
Can't speak on American tax, so good luck on that. Keep some cash in reserve for it.
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