Black Monday

[BobbyMorocco]

One question that nobody has ever given me an answer to (or one that makes sense) is on these days when the share market collapses where does all the cash for the buying come from? And then where does all the cash the sellers get go to?

At the end of the day on a net basis no cash has left the market (just its value is billions less)

Any simple answer.

Here's a simple answer. It comes from those who have cash to buy.

I think most people get that cash by doing something that others are willing to give them money for.

Where the money came from in the very beginning I've got no idea.

How did currency come about?

Perhaps it's not so unlike bitcoin after all. I'm speculating, but is it just something someone made up one day and then eventually enough people said I like how that works please give me some and so more and more of it was created out of thin air?

Then people realised it had value and it was used to trade for products and services.

The problem is most of what's circulating is not cash at all. It's credit. Which I think is like me saying to you "hey winner I'm going to give you $100 for a bag of those tomatoes you want to sell." You believe me (because I'm a trustworthy guy and all) and so you then buy some apples from some guy using that $100 credit (he's also cool with that because you're a trustworthy guy). Later on, the guy with the apples says "hey winner I actually want that $100 and I want it in cash." You then come to me asking for $100 cash and I say "oh s**t I'm sorry winner I'm having money problems right now. It seems I borrowed more than I can afford and I've got no way of ever paying you." That means either you or the guy selling apples has to write off that debt. From there it vanishes into thin air the exact same way that it was created.

I think that's how it works??? It's all just made up 😂

Where does all the cash the sellers get go to?

Into their savings accounts at Heartland Bank. Ask Beagle. He just put a bunch in there

I disagree with your last comment. On a net basis more cash has left the market because there are more people at this point in time doing what Beagle has done and cashing out than there is buying in. There's still the same number of assets available but people are saying we are not willing to pay the same amount for them and would rather have that money sitting somewhere else, so the prices drops.

Simple supply vs demand is it not?

[Joshuatree]

i assume it comes from people like Matin Hawes that was selling 18 months ago .?

Thats it and all the others advising to sit through this while they're cashed/cashing up.

[hardt]

big night tonight -- inflation figures

Consensus is sitting on 1.9% overall and 1.7% core...

50% of the market believes there will be 3 rate hikes this year...

10 minutes to go.

[bull....]

Consensus is sitting on 1.9% overall and 1.7% core...

50% of the market believes there will be 3 rate hikes this year...

10 minutes to go.

there our big move ... very strong cpi futures just drop 400 pts from highs

[hardt]

there our big move ... very strong cpi futures just drop 400 pts from highs

1.8% instead of 1.7% expected... sky is falling in apparently.

All about how the FED react to the numbers as opposed to the numbers themselves.

EDIT - 3rd rate hike this year is back up to 100% expected Attachment 9490

Fun fact, my US portfolio is up 4% this morning... what a treat on the back of apparent bad news?

[fish]

Martin was not literally wrong imo, it is his timing that was off by quite a big margin. These FA / pseudo economist / advisor guys who get the spooks tend to call an early exit. Did he get paid for writing that article? (another perspective).

The logic seemed sound though, it's just a matter of timing. Who knows how many punters he sucked into an early exit missing the great bull market topping process. I wonder what he's got to say about that advice now, maybe it's 'I will attend chart school to learn about market sentiment'.

I doubt it, some 'advisors' are so entrenched in their ways, with loyal followers bolstering their egos, it's hard to imagine that they would diversify their inputs to broaden their enlightenment and consequent advice.

How sure are you that chartists have performed better than free thinkers?
I agree following advisors entrenched in their own views may not pay DIVIDENDS

[winner69]

1.8% instead of 1.7% expected... sky is falling in apparently.

All about how the FED react to the numbers as opposed to the numbers themselves.

EDIT - 3rd rate hike this year is back up to 100% expected Attachment 9490

Fun fact, my US portfolio is up 4% this morning... what a treat on the back of apparent bad news?

Some say those CPI numbers a bit dodgy ...there ain’t much inflation so no worries

[Balance]

https://www.cnbc.com/2018/02/15/mark...-investor.html

Invest in quality stocks and when they get cheap, buy more!

[arc]

I expect a market rise in reaction to the last decline, but also expect another market decline around 10 to 17%, sometime this year.

[Blakie]

I expect a market rise in reaction to the last decline, but also expect another market decline around 10 to 17%, sometime this year.

10-15%? Try 40-50%.
There is now more liquidity floating around looking for a yield than any point in history and it's not going to end well.
The global economic system is broken badly, even Stevie Wonder can see that.
Low interest rates, coupled with printing unlimited dollar bills is going to end in disaster.

You can expect the property market to cool by 20-40% with the biggest drops in Auckland where the market has basically become a pyrimd scheme.

Fun times ahead peps!
https://medium.com/insurge-intellige...ty-ed217752428