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Which part? Because I'm more than willing to stand on those points as being accurate. The assertion that you need someone to actually buy and hold stocks to h
by chollida1 11y ago
Which part?
Because I'm more than willing to stand on those points as being accurate.
The assertion that you need someone to actually buy and hold stocks to have a stock market,
or the assertion that there aren't pension funds and ETF funds willing and able to put 100's of billions of money into the market?
These two types of investors act as dampers.
When the markets go south they are the ones who start buying up "bargains" and hold their existing positions because they aren't worries about 6 month returns they are worried about 25 year returns
> It sounds to me like you made it up.
You can think that if you'd like... Since trading on the equity markets is my day job, I'm pretty comfortable with my knowledge of them.
- lintiness 11y agopension and etf funds are for the most part full invested. outside investors with dollar signs in their eyes are what you're talking about, and there's absolutely nothing preventing these investors from buying chinese stocks (hong kong proxy or whatever).
- jonknee 11y agoThey have new money coming in every month.
- chatmasta 11y ago> or the assertion that there aren't pension funds and ETF funds willing and able to put 100's of billions of money into the market? Based on your HN profile, you are 10000x more qualified than me on this subject, but I would like to see some evidence to back up the claim that the shanghai stock exchange has no pension funds trading large volumes of equities over long time horizons. According to the wikipedia chronology of the Shanghai Stock Exchange [1], an influx of speculators did not enter the market until 2006-2007, following the "unbanning" of IPO's. Presumably the implication is that prior to speculators entering the market, most trades were executed by large institutional investors. If these institutional investors are not trading on long time horizons (like a pension fund would), then who are they, where does their funding come from, and for what purpose do they use the exchange? [1] https://en.wikipedia.org/wiki/Shanghai_Stock_Exchange#Chronology https://en.wikipedia.org/wiki/Shanghai_Stock_Exchange#Chrono...
- dilemma 11y agoThe individual investors that joined the stock market in 2006 are all "pension funds" in their own right. That is what they are saving for, amongst other things. And of course there are pension funds in China.