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Economy crash =/= stock market crash?

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  • GSP
    GSP Posts: 894 Forumite
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    edited 18 June 2022 at 3:05PM
    Cus said:
    The person you bought it from for £100 and then sold back to him for £50.
     Liberty!
    Actually seems like an element of Only Fools & Horses with some fingers burnt.
  • Type_45
    Type_45 Posts: 1,723 Forumite
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    edited 20 June 2022 at 12:44PM
    Small investors are the fish food for the big hedge funds and pension funds. These big funds are trying to get their money out of the market because the trend is down. They can't do it all in one day because that will drive the price down too far and fast and they'll lose lots of money as they get out.

    On green days like today they are putting word out (probably via the very "experts" who get quoted on this forum) that the bottom is in to keep people invested. Meanwhile, they are getting their money out.
  • GSP
    GSP Posts: 894 Forumite
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    Type_45 said:
    Small investors are the fish food for the big hedge funds and pension funds. These big funds are trying to get their money out of the market because the trend is down. They can't do it all in one day because that will try the price down too far and fast and they'll lose lots of money as they get out.

    On green day's like today they are putting word out (probably via the very "experts" who get quoted on this forum) that the bottom is in to keep people invested. Meanwhile, they are getting their money out.
    And what do you think they are doing with all this money?
  • Type_45
    Type_45 Posts: 1,723 Forumite
    1,000 Posts Fifth Anniversary Name Dropper Combo Breaker
    GSP said:
    Type_45 said:
    Small investors are the fish food for the big hedge funds and pension funds. These big funds are trying to get their money out of the market because the trend is down. They can't do it all in one day because that will try the price down too far and fast and they'll lose lots of money as they get out.

    On green day's like today they are putting word out (probably via the very "experts" who get quoted on this forum) that the bottom is in to keep people invested. Meanwhile, they are getting their money out.
    And what do you think they are doing with all this money?
    At the moment it's still tied up in the equities. Hence the whole thing hasn't collapsed yet.


  • InvesterJones
    InvesterJones Posts: 1,264 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Type_45 said:

    On green days like today they are putting word out (probably via the very "experts" who get quoted on this forum) that the bottom is in to keep people invested. Meanwhile, they are getting their money out.

    It is indeed another green day (FTSE100 up 1.65% as I type), but I haven't seen any expert saying we've hit the bottom - can you provide links to any?
  • Type_45
    Type_45 Posts: 1,723 Forumite
    1,000 Posts Fifth Anniversary Name Dropper Combo Breaker
    Type_45 said:

    On green days like today they are putting word out (probably via the very "experts" who get quoted on this forum) that the bottom is in to keep people invested. Meanwhile, they are getting their money out.

    It is indeed another green day (FTSE100 up 1.65% as I type), but I haven't seen any expert saying we've hit the bottom - can you provide links to any?
    Charts suggest this week could be a ‘key moment’ for the S&P 500, Jim Cramer says

    “Eventually the bears will run out of firepower and some of the money sitting on the sidelines will come back into the market,” the “Mad Money” host said. “This is a bullish scenario, people.”


    https://www.cnbc.com/2022/06/14/cramer-charts-suggest-this-week-could-be-a-key-moment-for-sp-500.html
  • InvesterJones
    InvesterJones Posts: 1,264 Forumite
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    edited 20 June 2022 at 5:05PM
    Type_45 said:
    Type_45 said:

    On green days like today they are putting word out (probably via the very "experts" who get quoted on this forum) that the bottom is in to keep people invested. Meanwhile, they are getting their money out.

    It is indeed another green day (FTSE100 up 1.65% as I type), but I haven't seen any expert saying we've hit the bottom - can you provide links to any?
    Charts suggest this week could be a ‘key moment’ for the S&P 500, Jim Cramer says

    “Eventually the bears will run out of firepower and some of the money sitting on the sidelines will come back into the market,” the “Mad Money” host said. “This is a bullish scenario, people.”


    https://www.cnbc.com/2022/06/14/cramer-charts-suggest-this-week-could-be-a-key-moment-for-sp-500.html

    If I read that correctly, he's saying that IF S&P500 falls to 3500 then it could be a buying opportunity, not that we're at the bottom now.

    "But without the recovery, the index could plunge to its next floor of support around 3,550, said Cramer.

    "But, and this is a very big but, if we do get a decline to the 3,500s, she thinks that would be a buying opportunity. Of course, she could be wrong," Cramer said."


  • Type_45
    Type_45 Posts: 1,723 Forumite
    1,000 Posts Fifth Anniversary Name Dropper Combo Breaker
    Type_45 said:
    Type_45 said:

    On green days like today they are putting word out (probably via the very "experts" who get quoted on this forum) that the bottom is in to keep people invested. Meanwhile, they are getting their money out.

    It is indeed another green day (FTSE100 up 1.65% as I type), but I haven't seen any expert saying we've hit the bottom - can you provide links to any?
    Charts suggest this week could be a ‘key moment’ for the S&P 500, Jim Cramer says

    “Eventually the bears will run out of firepower and some of the money sitting on the sidelines will come back into the market,” the “Mad Money” host said. “This is a bullish scenario, people.”


    https://www.cnbc.com/2022/06/14/cramer-charts-suggest-this-week-could-be-a-key-moment-for-sp-500.html

    If I read that correctly, he's saying that IF S&P500 falls to 3500 then it could be a buying opportunity, not that we're at the bottom now.

    "But without the recovery, the index could plunge to its next floor of support around 3,550, said Cramer.

    "But, and this is a very big but, if we do get a decline to the 3,500s, she thinks that would be a buying opportunity. Of course, she could be wrong," Cramer said."



    It all amounts to the same thing.  They are trying to keep people invested, and to buy even more if there is a dip, whilst the smart money exits the markets in an orderly fashion.
  • Type_45
    Type_45 Posts: 1,723 Forumite
    1,000 Posts Fifth Anniversary Name Dropper Combo Breaker
    Lagarde is being worryingly honest here...


    Europe faces 'severe' risk of disorderly financial market correction: Lagarde

    “While the correction in asset prices has so far been orderly, the risk of a further and possibly abrupt fall in asset prices remains severe…”


    https://www.reuters.com/markets/europe/europe-faces-severe-risk-disorderly-financial-market-correction-lagarde-2022-06-20/ 
  • InvesterJones
    InvesterJones Posts: 1,264 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 20 June 2022 at 6:00PM
    Type_45 said:
    Type_45 said:
    Type_45 said:

    On green days like today they are putting word out (probably via the very "experts" who get quoted on this forum) that the bottom is in to keep people invested. Meanwhile, they are getting their money out.

    It is indeed another green day (FTSE100 up 1.65% as I type), but I haven't seen any expert saying we've hit the bottom - can you provide links to any?
    Charts suggest this week could be a ‘key moment’ for the S&P 500, Jim Cramer says

    “Eventually the bears will run out of firepower and some of the money sitting on the sidelines will come back into the market,” the “Mad Money” host said. “This is a bullish scenario, people.”


    https://www.cnbc.com/2022/06/14/cramer-charts-suggest-this-week-could-be-a-key-moment-for-sp-500.html

    If I read that correctly, he's saying that IF S&P500 falls to 3500 then it could be a buying opportunity, not that we're at the bottom now.

    "But without the recovery, the index could plunge to its next floor of support around 3,550, said Cramer.

    "But, and this is a very big but, if we do get a decline to the 3,500s, she thinks that would be a buying opportunity. Of course, she could be wrong," Cramer said."



    It all amounts to the same thing.  They are trying to keep people invested

    I think you're misreading that particular article. It's not saying 'we're at the bottom so stay invested', it's saying the analyst thinks it could either recover or fall further (amazing huh!) - and that if it fell further then it might be a buying opportunity.

    On the other hand I have seen advice in multiple places saying that buy high and sell low is a bad strategy, and staying invested is a good idea if that's what your plan was - but this is nothing to do with being at the bottom of a market, it's purely about the chances of making gains if you stay longer in the market and how that's the case regardless of whether you're at a local top or bottom.
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