Black Monday

[SailorRob]

Its doesn't take billions of selling ie cashing out to sidelines to bring down valuations by billions ...eg yesterday FPH valuations dropped much more then the amount of trading ...similarly it goes while going up ...so hype / valuations story plays a role in creating or destroying wealth . Not merely demand and supply story here ...people shud perceive to be buying into something more valuable then its current SP ...ie they shud expect higher future SP ...which is based on some facts like future earnings prospects and some hype ...short term mismatches get equalised fast in current environment .

In nutshell lasting value is created by corporate results and future perceptions of them and current and expected future financial environment not merely by few days of demand / supply mismatch

What you are saying here is right, you can destroy billions in value without even any buying or selling.

Market cap of a company can go up 100 billion dollars just with a few hundred dollars traded. Or down.

[SailorRob]

Yes alokdhir …you complicate matters

What Rob is saying the cash from selling FPH yesterday that went to the sidelines was replaced by cash from the sidelines when the purchasers bought those shares …the amount of cash on the sideline didn’t change

Alokdhir is right in that the value of FPH can change far more than the cash that goes in and out.

[SailorRob]

[bull....]

Correct, the amount of cash cannot change.

When you put your sidelined cash into shares the bank balance of the seller increases as your cash flows to them.

Every dollar must be held on the sideline at all times by someone.

i disagree

the amount of cash can change on the sidelines

fed or other central banks prints new money
people borrow money to invest

all one way or another increases the money on the side lines

in fact you can have the money on the sidelines stay the same but one person who already owns the stock borrows on margin to buy more ie no new money came from the sidelines

[SailorRob]

i disagree

the amount of cash can change on the sidelines

fed or other central banks prints new money
people borrow money to invest

all one way or another increases the money on the side lines

in fact you can have the money on the sidelines stay the same but one person who already owns the stock borrows on margin to buy more ie no new money came from the sidelines

Yes correct, I already covered this.

Creating new loans or paying them back or defaulting will change aggregate cash.

But once it's there it's a hot potato, someone gotta hold it.

I meant the amount of cash that is involved in a buying/selling transaction, people here think that when someones bank balance is used to buy a stock, that cash is not 'in the market and off the sidelines' It is not.

[Valuegrowth]

SailorRob

Line is straight up. Don't you think it's time to be fearful.

[SailorRob]

SailorRob

Line is straight up. Don't you think it's time to be fearful.

You completely missed the point of the chart.

Study it again.

The line is completely flat for 493 of the 500 companies.

What about the 3000 others beneath.

[Valuegrowth]

I was talking about those tech companies on the first line.

You completely missed the point of the chart.

Study it again.

The line is completely flat for 493 of the 500 companies.

What about the 3000 others beneath.

[SailorRob]

I was talking about those tech companies on the first line.

Yes I think you are probably right.

[Panda-NZ-]

Good time for nvidia and other ai stocks etc to do capital raise to take advantage of being "trendy", for now.