Black Monday

[Valuegrowth]

https://countercurrents.org/2023/05/...-305-trillion/

"The IIF warned that the combination of such high debt levels and rising interest rates had pushed up the cost of servicing that debt, prompting concerns about leverage in the financial system."

Quoted from the above link.

[Rawz]

Sailor do you not have cash on the sidelines?

[bull....]

all hail the AI

[SailorRob]

Sailor do you not have cash on the sidelines?

Absolutely not, there are so many incredible opportunities out there right now, only a few times in the last 25 years will you see opportunity like this. I am 100% invested and then some.

I don't trust a debt instrument controlled by Orr and Robertson in cahoots, paying a deeply negative return.

When I can invest in a near certain 12% return I won't hold cash.

[SailorRob]

Sailor do you not have cash on the sidelines?

But the point I'm making is that if I had cash on sidelines and then invested it, the cash would still be on the sidelines.

Just someone else would have it on their sidelines.

[winner69]

But the point I'm making is that if I had cash on sidelines and then invested it, the cash would still be on the sidelines.

Just someone else would have it on their sidelines.

Yep … the cash was kicked into touch and now they having a lineout to get the cash back on the field

[alokdhir]

Yep … the cash was kicked into touch and now they having a lineout to get the cash back on the field

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

[winner69]

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

[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

How do you get Billions of selling without Billions of BUYING?

[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

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.