@Ash005 Hi bro !
FOR THE LOVE OF GOD SOMEONE EXPLAIN THIS
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any of you follow stocks and wall st? so as you know we are in a bear market, full on correction, close to a recession. we lost one of the biggest one day drops ever in history yesterday. and yet i look up now and i see the futures indicator sitting at a 1200+ gain??????????????????? as of this morning. WHY????????????????????????????? think about this. not a single positive thing happened since then. thr government waved their stimulus wand yesterday and no one cared. so why care the next day?????????? also, do you have any fkn idea how much revenue businesses are gonna lose after all this? i saw a report we might lose 4% GDP! so when this next quarter number comes in it will be insanely dismal! so my nagging question. who is buying these worthless stocks this morning???????????? what do you get out of them? and if everything is so hellish , who would even have stocks to offer you??????????? seriously, explain this shit! wall st never ever ever will make sense to me. you ask me its just greed trying to not admit defeat. thankyou
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@mikeJB
Well hello there, thanks for posting on this topic I was badly looking to talk about this with someone sensible but most here don't even know what indices are.I am an Indian so I don't follow Dow/Nasdaq/other American indices much, but we have a very similar situation here, I will try to tell you our story.
12th March Our benchmark index (Nifty) fell the most in a single day (9%) , and even today Match 13th it fell even more (10%) as soon as the markets opened, triggering a lower circuit @10%.Now that u know the backdrop it is safe to assume that u can predict the erosion of wealth from Indian Economy with all the FIIs pushing us into Bear Territory. Now analysts here have a say that to avoid any further erosion, the government may infuse capital back in the stock market by way of Govt Undertakings and advising mutual funds (this has actually happened before here). So if these entities buy the scrips at cheap prices, what happens is it restores the faith of both FIIs and Domestic Investors, who in reutrn pump money in the market, thus avoiding more loss.
The whole point of govt backed buying of stocks at such time being to prevent the economic slump.
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but its PHONEY MONEY. you are just printing that money out of thin air like our FED does. you dont really have trillions there. an what people dont get it when you flood and saturate the market with this stimulus, you will create MASSIVE inflation! value is based on scarcity of somethign and also trust and backing of it. and lastly, all this is doign is PROPING UP an economy. that is a falsehood and it will end badly
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@mikeJB Here in India, the govt isn't printing money as a matter of fact since u know it I know it the govt is not stupid to not know it. This had happened 10 years back during another crisis in the market. Also yes the undertakings have a lot of money here to pump in and gets the money back once the market is back on track. So no loss to them, no printing of money (this is not Zimbabwe or Venezuela that u r so poor that u gotta print money), no inflation.
Governments aren't stupid :) this has happened before and there was no "hyper inflation". Atleast here I am not sure of America.
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ok. so our dopey FED bought up a bunch of treasuries today. thats not all that amazing. then why did our stocks close at 2000!!!!!!!!!!!?????????
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@mikeJB it's candy land for me man everything is dirt cheap. Lol I already bought more than a hundred thousand shares.
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@MrXs-spiritgen7 then when you hit the ground hard and lose everything, remember when you said that
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@mikeJB okay stocks are like building blocks of a company if you buy enough shares you can even control it so the trick employed by share raiders everywhere is that they hoard money and when some calamity like this strikes the prices of shares goes down and as you can see now people panick and sell shares by millions and as this virus is not going to wipe out the whole world the companies which are going through losses would fly higher than before so if I buy a share say for 10 bucks I'll get 35 out of it after a year if the company continues expanding the share price would rocket and then it'll sell for something like 70 bucks and if I buy say 12,000 shares you can readily see the money gained.
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@mikeJB what the heck do you think giants like general motors is gonna shut down?🤣🤣
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@mikeJB dire times like this are dreams for stockbrockers.
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@MrXs-spiritgen7 i think MANY companies will see bankruptcy. we are headed for a year long or more recession sir
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@mikeJB that's why you don't invest in startups and local companies you invest in MNCs
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@mikeJB have you seen share prices in the medical sector they're at an all time high.
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@MrXs-spiritgen7 i sure hope airline and cruise stocks arent in your portfolio
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@mikeJB for god's sake no they're the most unpredictable sectors.
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@MrXs-spiritgen7 just stick with gold. can never go wrong (for now)
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@mikeJB well I have invested some in the marine sector but it'll become profitable only after a decade or so.
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@mikeJB gold is for rookies. It's actually really cheap.
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@mikeJB buying and selling shares is really hairy.
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@MrXs-spiritgen7 so is oil ut you wouldnt catch me going near it. esp with a war about to get worse