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You are thinking like a small individual investor. Many larger players are highly leveraged. They don't always have the option to ride the lows. These players
by anm89 7y ago
You are thinking like a small individual investor.
Many larger players are highly leveraged. They don't always have the option to ride the lows.
These players have wildly more influence over market prices than mom and pop investors who can ride crashes.
- emerongi 7y agoI thought it was the other way round. Mom and pop pull money out because they need to use it when the economy turns bad, big players can ride the wave because their everyday lives really aren't affected.
- anm89 7y agoIt can go both ways but institutional traders have access to huge leverage and can also handle large write downs. They take margin calls that are enormous by mom and pop standards all the time.
- fullito 7y agoIs that then good for me that i can wait it out? And what is with all those pension fonts etc.?