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I really strongly disagree. This narrative is aggressively pushed and everyone from the president to folks on Wall Street think that market health is everythin

by munk-a 7y ago

I really strongly disagree. This narrative is aggressively pushed and everyone from the president to folks on Wall Street think that market health is everything to everyone, but people with no skin in the game really don't care. A lot of Americans have no idea what a DOW even is and only know the stock market as "that place where folks gamble". Additionally those folks with mutual funds are mostly ignorant to the market as well - only those really close to end of life and suffering a financial crisis really need to evaluate how much money they may be able to draw out quickly.

admiral33 7y ago
You are underestimating the massive amounts of layoffs that have been happening in the past week and a half. That's the market dying. It's not just stocks. If valuation goes down, that usually means less revenue coming in, which means less money to pay employees, which leads to them getting fired, which leads to less spending, which leads to less revenue going in...
- munk-a 7y ago
  Oh, the layoffs are terrible and a lot of people are in a really bad place - please don't read my statement above as implying the everything is honky dory for everyone. It's just, these two things aren't connected - the market can tail spin or be in a huge surge and things don't really change for most folks on the ground - a few more or a few less yachts are built. Valuation going down doesn't cause less revenue to come in - less revenue coming in will cause valuation is going down, but a lot of other things (including paniced sell offs, speculation, and everyone and their brother learning what "shorting" is) cause the valuation to go down as well. The economy is in trouble, but the stock market is only an indicator of the economy, not a vital component of it - so America cares that layoffs are happening, America doesn't give a hoot that the DOW is bearish or bullish.

by munk-a 7y ago

admiral33 7y ago

You are underestimating the massive amounts of layoffs that have been happening in the past week and a half. That's the market dying. It's not just stocks. If valuation goes down, that usually means less revenue coming in, which means less money to pay employees, which leads to them getting fired, which leads to less spending, which leads to less revenue going in...

munk-a 7y ago
Oh, the layoffs are terrible and a lot of people are in a really bad place - please don't read my statement above as implying the everything is honky dory for everyone. It's just, these two things aren't connected - the market can tail spin or be in a huge surge and things don't really change for most folks on the ground - a few more or a few less yachts are built. Valuation going down doesn't cause less revenue to come in - less revenue coming in will cause valuation is going down, but a lot of other things (including paniced sell offs, speculation, and everyone and their brother learning what "shorting" is) cause the valuation to go down as well. The economy is in trouble, but the stock market is only an indicator of the economy, not a vital component of it - so America cares that layoffs are happening, America doesn't give a hoot that the DOW is bearish or bullish.