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When the market crashes 20% just as much money flows in as flows out. When the market climbs 20% just as much money flows out as flows in. If you disagree, we m
by tedsanders 5y ago
When the market crashes 20% just as much money flows in as flows out. When the market climbs 20% just as much money flows out as flows in. If you disagree, we must be using the same words to mean different concepts.
- Ekaros 5y agoIf we think about amount of money circulating in just stock market. That is not in other economy. Would it not be possible for money to flow into that pool? And increase in this would lead to increased prices. That is same money is being traded around and some new money flows into that amount? Ofc, this is somewhat linked to valuations, but market could crash and it wouldn't decrease. Unless some people take money out of this circulation.
- errantmind 5y agoI think nkmnz has the correct answer above. That is the meaning of inflows. Given that, my initial comment was invalid.