6 ms·

If one thing i have seen stock market != real world economics. You had a car rental go broke and its stock got pumped 500% or so after the fact.

stingrae 6y ago
sure. But for Softbank, this current bump (which is think is artificial and going to pop) could allow for them to liquidate some of their positions (likely without making too much of a price disturbance) to allow for diversification.
- itsoktocry 6y ago
  >to allow for diversification. I'm not sure that is or was ever in the plans for SoftBank. "Pump and dump" gets thrown around a lot, but hasn't that been their model? Get in as early your massive dollars allow, promote the hell outta the company, feed the tech/SV/VC ecosystem, cash out, repeat.
rtx 6y ago
Stock market is real, what's fake is all the modelling they do in excel.
- ASalazarMX 6y ago
  Stock market is real for the few privileged insiders, the rest of us have modest profits or even loses that pay for someone else's profits.
  - marcusverus 6y ago
    Silliness. The market is effectively a free money machine for people who are capable of delaying gratification. The fact that most people are not capable of this is not the fault of the market. And, for the record, the rich aren't getting better returns than the rest of us--the S&P beats the vast majority of Hedge Funds, year after year. https://www.cnbc.com/2019/03/15/active-fund-managers-trail-the-sp-500-for-the-ninth-year-in-a-row-in-triumph-for-indexing.html https://www.cnbc.com/2019/03/15/active-fund-managers-trail-t...
    - eckmLJE 6y ago
      Half of Americans own stocks at all, and the rich don't have all their money in hedge funds.
    - XorNot 6y ago
      Anyone who can consistently beat the market with the their process doesn't stay in the public investment game for long - why would they? They turn into self-funding private investment firms.
      - Jorge1o1 6y ago
        GP is actully referring to just earning the market rate of return, not beating it. Stocks for the Long Run and all that
    - hshshs2 6y ago
      sorry but the real “rest of us” is the 70% of the population that doesn’t even have a 401k... and it’s not because they’re bad at delaying gratification
    - ClumsyPilot 6y ago
      "The market is effectively a free money machine" That's clearly an absurdity and not physically possible. Whatbwe do know is that every time we have QE 90% of the money ends up in financial markets, not real economy. This is a well known problem, and Yanis Varufakis has talked about it at length
      - marcusverus 6y ago
        >That's clearly an absurdity and not physically possible. And yet the market has averaged a 7% annual return since 1870.
        _trampeltier 6y ago
        But special this year the USD lost a lot of value. USD - CHF (Switzerland) is about minus 8.5%, so your +7% would be still a minus business for me. The high stock market and the high prices for building are more the true inflation than a true plus on the market.
dnautics 6y ago
yes but for investors the stock market matters, real world be damned.

stingrae 6y ago

sure. But for Softbank, this current bump (which is think is artificial and going to pop) could allow for them to liquidate some of their positions (likely without making too much of a price disturbance) to allow for diversification.

itsoktocry 6y ago
>to allow for diversification. I'm not sure that is or was ever in the plans for SoftBank. "Pump and dump" gets thrown around a lot, but hasn't that been their model? Get in as early your massive dollars allow, promote the hell outta the company, feed the tech/SV/VC ecosystem, cash out, repeat.

rtx 6y ago

Stock market is real, what's fake is all the modelling they do in excel.

ASalazarMX 6y ago
Stock market is real for the few privileged insiders, the rest of us have modest profits or even loses that pay for someone else's profits.
- marcusverus 6y ago
  Silliness. The market is effectively a free money machine for people who are capable of delaying gratification. The fact that most people are not capable of this is not the fault of the market. And, for the record, the rich aren't getting better returns than the rest of us--the S&P beats the vast majority of Hedge Funds, year after year. https://www.cnbc.com/2019/03/15/active-fund-managers-trail-the-sp-500-for-the-ninth-year-in-a-row-in-triumph-for-indexing.html https://www.cnbc.com/2019/03/15/active-fund-managers-trail-t...
  - eckmLJE 6y ago
    Half of Americans own stocks at all, and the rich don't have all their money in hedge funds.
  - XorNot 6y ago
    Anyone who can consistently beat the market with the their process doesn't stay in the public investment game for long - why would they? They turn into self-funding private investment firms.
    - Jorge1o1 6y ago
      GP is actully referring to just earning the market rate of return, not beating it. Stocks for the Long Run and all that
  - hshshs2 6y ago
    sorry but the real “rest of us” is the 70% of the population that doesn’t even have a 401k... and it’s not because they’re bad at delaying gratification
  - ClumsyPilot 6y ago
    "The market is effectively a free money machine" That's clearly an absurdity and not physically possible. Whatbwe do know is that every time we have QE 90% of the money ends up in financial markets, not real economy. This is a well known problem, and Yanis Varufakis has talked about it at length
    - marcusverus 6y ago
      >That's clearly an absurdity and not physically possible. And yet the market has averaged a 7% annual return since 1870.
      - _trampeltier 6y ago
        But special this year the USD lost a lot of value. USD - CHF (Switzerland) is about minus 8.5%, so your +7% would be still a minus business for me. The high stock market and the high prices for building are more the true inflation than a true plus on the market.

dnautics 6y ago

yes but for investors the stock market matters, real world be damned.