5 ms·
In reality a bad year is just a bad year, and many investors are (imo perfectly rationally) expect the market to return to normal soon. The 'investor class' of
by Gunax 6y ago
In reality a bad year is just a bad year, and many investors are (imo perfectly rationally) expect the market to return to normal soon.
The 'investor class' often gets derided for being short-sighted, but this is nonsense. In reality there are plenty of long-outlook investors who recognize this is a temporary set-back, and even then only in certain industries.
Even companies that had to essentially write '0' for revenue on their last 3 10-Qs are typically only marginally down. [1][2][3].
When stocks go up, the narrative is 'look! all the rich are getting richer!'
When stocks fall it's 'Those greedy millionaires are short sighted, look at what happened to everyone's pension!'
[1] https://www.marketwatch.com/investing/stock/dal https://www.marketwatch.com/investing/stock/dal
[2] https://www.marketwatch.com/investing/stock/ual https://www.marketwatch.com/investing/stock/ual
[3] https://www.marketwatch.com/investing/stock/ccl https://www.marketwatch.com/investing/stock/ccl
- wutbrodo 6y ago> When stocks go up, the narrative is 'look! all the rich are getting richer!' > When stocks fall it's 'Those greedy millionaires are short sighted, look at what happened to everyone's pension!' This hits the nail on the head. When the stock market was down 30% in Q2 and personal income was _up_, nobody was writing breathless articles about how investors were getting screwed while the common man was fine. It's pretty shocking how unserious coverage of the stock market is, from picking dishonest time windows ("stock market up 10% during pandemic! [counting from after the 30% crash]") to selectively ignoring the difference in time horizons between equity prices and snapshot economic statistics. A good rule of thumb is that reading mainstream articles harrumphing about the stock market is a waste of one's time, unless you're looking for a cable-news style dose of misinformed outrage for recreational reasons.
- harryh 6y agostock market up 10% during pandemic! [counting from after the 30% crash] God these articles/tweets drove me absolutely nuts and they were everywhere. It was so disheartening to see.