3 ms·
Forcing big leveraged players to sell is fantastic for everyone else. There will be a lot of cheap stocks to pick up for everyone else.
by bluecalm 6y ago
Forcing big leveraged players to sell is fantastic for everyone else. There will be a lot of cheap stocks to pick up for everyone else.
- duxup 6y agoSell, what exactly? They won't buy after that?
- meetups323 6y agoIt's hard to know exactly what the repercussions were, but in my experience a lot of stocks were down yesterday, including some FAANG's and the like down 5-10%. Those numbers aren't likely to be permanent, so anyone who wanted to buy anyways got a 5-10% discount.
- boringg 6y agoAssuming that you are in cash or another asset class that isn't being sold off.
- bluecalm 6y agoNo need for that assumption. Equities going down is not a problem for reasonable investors. You just buy more for cheaper prices according to your schedule and wait. You still own the % of your companies. It's not worth less just because you can't temporarily sell it. It would be like saying that price of your house is fluctuating from 0 to 500k depending if there is a potential buyer today or not. Stock market crash is only a big problem for leveraged over commited entities, very small inconvenience for people beyond accumulation phase (as they may need to sell very small % of assets in coming months) and huge opportunity for everyone else. Stocks crashing is fantastic for a little guy. It's the same with real estate prices and it's the reason entrenched players do everything to prevent it.
- elindbe3 6y agoOr just that you have some kind of disposable income.