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what's the difference between "People buying stuff that's going up" and "New money flowing in?"
by forgotmysn 5y ago
what's the difference between "People buying stuff that's going up" and "New money flowing in?"
- AnimalMuppet 5y agoNone. "People buying stuff that's going up" is exactly "new money flowing in" to that asset. But I may have left some confusion in my fourth paragraph. It's a bubble when it becomes a self-reinforcing feedback loop. People bought because it's going up, which makes it go up more, so more people buy, so it goes up even more, and so on. I didn't state that clearly enough.
- forgotmysn 5y agoI see, thank you. It sounds like you're saying the provenance of the funds is a key indicator. People buying stuff that's going up because those people closely follow industry or sector news. The people who buy because THOSE people bought are what drive the bubble growth.
- taneq 5y agoThe difference is whether people are buying the stuff that's going up because it's going up or they're buying it because it's good and has intrinsic value beyond what they think the market will pay for it tomorrow.
- asimjalis 5y agoWhy not both?