Reddit's Stock Threads Become a Must-Read on Wall Street

Re:Reddit's Stock Threads Become a Must-Read on Wall Street by jl2718 on Sunday October 11, 2020 @09:15AM (#24745538)

#2 doesn’t work. At least for heavily-traded sectors. Why?

First: “The markets will remain irrational longer than you will remain solvent.” Fed policy pumped in too much dumb money. If you don’t think like them, you lose.

Second: “Markets create their own reality.” Dumb money eventually creates smart results. Today access to capital is far more important than any other factor in success.

Third: “Opportunity is blood in the water.” Good investments are entrenched stable markets. Disruptive technologies kill margins for everybody.

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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by whimsicalism on Sunday October 11, 2020 @02:06PM (#24747737)

> Fed policy pumped in too much dumb money

Given fed policy, the outlook of the market seems rational. Why would the Fed not engage in expansionary monetary policy during a recession? Just so that the market better reflects how you "feel" it should look?

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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by CameronNemo on Sunday October 11, 2020 @11:58PM (#24751249)

Because monetary policy rarely works long term, and is a fatally blunt instrument.

Fiscal policy can be applied much more carefully and is often far more efficient.

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