Re:WallStreetBets vs WallStreet: It's not about the money an...
by koolba on Thursday January 28, 2021 @10:04AM
(#25942822)
All those institutions are interconnected. A large hit to one player can cascade to the wider market as they're forced to sell off other positions to put up additional capital. That could cause additional sell-offs for more leveraged players. And so on... The phrase "too big to fail" exists for a reason and it's smaller than you think.
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Re:WallStreetBets vs WallStreet: It's not about the money an...
by bluecalm on Thursday January 28, 2021 @10:11AM
(#25942939)
Forcing big leveraged players to sell is fantastic for everyone else. There will be a lot of cheap stocks to pick up for everyone else.
Re:WallStreetBets vs WallStreet: It's not about the money an...
by boringg on Thursday January 28, 2021 @10:18AM
(#25943055)
Assuming that you are in cash or another asset class that isn't being sold off.
Re:WallStreetBets vs WallStreet: It's not about the money an...
by bluecalm on Thursday January 28, 2021 @10:39AM
(#25943511)
No need for that assumption. Equities going down is not a problem for reasonable investors. You just buy more for cheaper prices according to your schedule and wait. You still own the % of your companies. It's not worth less just because you can't temporarily sell it. It would be like saying that price of your house is fluctuating from 0 to 500k depending if there is a potential buyer today or not.
Stock market crash is only a big problem for leveraged over commited entities, very small inconvenience for people beyond accumulation phase (as they may need to sell very small % of assets in coming months) and huge opportunity for everyone else.
Stocks crashing is fantastic for a little guy. It's the same with real estate prices and it's the reason entrenched players do everything to prevent it.
Re:WallStreetBets vs WallStreet: It's not about the money an...
by elindbe3 on Thursday January 28, 2021 @01:09PM
(#25946089)
Or just that you have some kind of disposable income.
Re:WallStreetBets vs WallStreet: It's not about the money an...
by duxup on Thursday January 28, 2021 @10:16AM
(#25943016)
Sell, what exactly? They won't buy after that?
Re:WallStreetBets vs WallStreet: It's not about the money an...
by meetups323 on Thursday January 28, 2021 @10:35AM
(#25943436)
It's hard to know exactly what the repercussions were, but in my experience a lot of stocks were down yesterday, including some FAANG's and the like down 5-10%. Those numbers aren't likely to be permanent, so anyone who wanted to buy anyways got a 5-10% discount.