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> "we need to get out of stocks" and "everything else is also fucked", driving investors back into stocks due to a lack of somewhere else to go layman's perspe
by HenryBemis 6y ago
> "we need to get out of stocks" and "everything else is also fucked", driving investors back into stocks due to a lack of somewhere else to go
layman's perspective here: well.. people with money want to invest it somehow, somewhere to increase it.
-It is stock. The stock prices go up and (e.g.) gold price goes down.
-Then some think "ooh gold is so cheap", and cash out their profits from stocks, and drop that money to gold. Stocks go down, gold goes up.
-Then some think "ooh stocks are so cheap", and cash out their profits from gold, and drop that money to stocks. Gold goes down, stocks go up.
-ad infinitum..
Now then.. the big players that move the marker, position themselves early on and ride the full wave. The semi-smart catch part of that wave 'up'. The little fish/retail/impatient tend to buy the stock/gold on its peak, and is paying for the exit-ers profit-cash-out. And then they either cut their losses, or they wait for 1-2-5 years for the next 'peak' to sell to someone else (I know I am oversimplifying it - apologies).
Where stocks, gold please replace with stock[A..Z], bond[A..Z], index[A..Z], commodity[A..Z] and so on..