4 ms·

> It's impossible to predict where this market will go just like any collectible market because it's so driven by market sentiment. As someone who knows little

> It's impossible to predict where this market will go just like any collectible market because it's so driven by market sentiment. As someone who knows little about trading cards or "markets" in general I guess, how is this different than any other market? Seems like everything is driven by market sentiment, even things like toilet paper from time to time.

okl 5y ago
You don't use up trading cards like you do toilet paper. Neither are trading cards continuously produced like toilet paper.
- capableweb 5y ago
  Sure, that was just one (tongue-in-cheek) example. What about stocks?
  - GoatOfAplomb 5y ago
    Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Trading cards (and cryptocurrencies) are not like that. You can only make money if someone else is willing to pay more for it.
    - capableweb 5y ago
      > Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Correct me if I'm wrong, as I don't know much about stocks, but doesn't that require the company to have/pay out dividends? Otherwise you do require others to buy the stock when you sell it. > Trading cards (and cryptocurrencies) are not like that Don't know enough about trading cards to say that you're incorrect, but you're definitely wrong about cryptocurrencies. You can do various things to earn more without loosing your current amount, from staking (Polkadot), loaning (Compound) to getting rewarded for providing liquidity (Uniswap) or for doing nothing at all (Algorand).
      - jkhdigital 5y ago
        > doesn't that require the company to have/pay out dividends? If you make money along the way, as opposed to when you sell, then yes. The prevailing corporate playbook seems to prefer stock buybacks over dividends, which accomplishes roughly the same thing but only triggers tax liabilities for the stockholders who “cash out” by selling. Obviously there is a limit to this process, but in a frictionless world of perfect financial knowledge a stockholder would always prefer the buyback approach since it defers taxes on the gains as long as possible.
      - GoatOfAplomb 5y ago
        Thank you; I recognize that you're correct regarding cryptocurrency here and I was not. And yes, a company would have to pay dividends, which is what I was hiding in my "in principle" parenthetical.
    - mym1990 5y ago
      With the exception of companies that pay dividends, if you don’t sell the stock you don’t get back anything because it is an unrealized gain(or loss). You trade your money for ownership, and you can only have one or the other.
- deleted 5y ago
  [deleted]
kgwgk 5y ago
There was a time when trading in equity shares was driven in part by the so-called "fundamentals". How the business was doing (and the outlook), if the company was making money (and would make money in the future), things like that.
- lotsofpulp 5y ago
  Is that not how it is now? The top companies seem to have pretty good fundamentals and trajectories to me.
  - ramraj07 5y ago
    You mean like Tesla? Or even any of the top tech companies?
    - cainxinth 5y ago
      Tesla does have good fundamentals and a good trajectory as a car company. They make a product that people want, that sells well even with large margins, for which demand is expected to continue to grow. The fact that the market ran up its stock price till the P/E went stratospheric doesn’t make their core business any less viable. If Tesla stock crashes, it likely won’t be because of anything the company did, but because all bubbles eventually burst, and just about every market, from equities to crypto to trading cards and real estate is heinously overvalued right now and due for correction.
      - kgwgk 5y ago
        > The fact that the market ran up its stock price till the P/E went stratospheric doesn’t make their core business any less viable. Of course the highly inflated stock price doesn't make their business less viable. It does make it more viable! They've raised large amounts of capital at very favorable terms. In any case, the point is that the price is quite dettached from those "good fundamentals".
    - lotsofpulp 5y ago

okl 5y ago

You don't use up trading cards like you do toilet paper. Neither are trading cards continuously produced like toilet paper.

capableweb 5y ago
Sure, that was just one (tongue-in-cheek) example. What about stocks?
- GoatOfAplomb 5y ago
  Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Trading cards (and cryptocurrencies) are not like that. You can only make money if someone else is willing to pay more for it.
  - capableweb 5y ago
    > Stocks represent fractional ownership of a future income stream - the profits of the underlying corporation. You can (in principle) buy a stock, never sell it, and get back more money than you put in. So you're not completely dependent on what others are willing to pay for it in the future. Correct me if I'm wrong, as I don't know much about stocks, but doesn't that require the company to have/pay out dividends? Otherwise you do require others to buy the stock when you sell it. > Trading cards (and cryptocurrencies) are not like that Don't know enough about trading cards to say that you're incorrect, but you're definitely wrong about cryptocurrencies. You can do various things to earn more without loosing your current amount, from staking (Polkadot), loaning (Compound) to getting rewarded for providing liquidity (Uniswap) or for doing nothing at all (Algorand).
    - jkhdigital 5y ago
      > doesn't that require the company to have/pay out dividends? If you make money along the way, as opposed to when you sell, then yes. The prevailing corporate playbook seems to prefer stock buybacks over dividends, which accomplishes roughly the same thing but only triggers tax liabilities for the stockholders who “cash out” by selling. Obviously there is a limit to this process, but in a frictionless world of perfect financial knowledge a stockholder would always prefer the buyback approach since it defers taxes on the gains as long as possible.
    - GoatOfAplomb 5y ago
      Thank you; I recognize that you're correct regarding cryptocurrency here and I was not. And yes, a company would have to pay dividends, which is what I was hiding in my "in principle" parenthetical.
  - mym1990 5y ago
    With the exception of companies that pay dividends, if you don’t sell the stock you don’t get back anything because it is an unrealized gain(or loss). You trade your money for ownership, and you can only have one or the other.
deleted 5y ago
[deleted]

kgwgk 5y ago

There was a time when trading in equity shares was driven in part by the so-called "fundamentals". How the business was doing (and the outlook), if the company was making money (and would make money in the future), things like that.

lotsofpulp 5y ago
Is that not how it is now? The top companies seem to have pretty good fundamentals and trajectories to me.
- ramraj07 5y ago
  You mean like Tesla? Or even any of the top tech companies?
  - cainxinth 5y ago
    Tesla does have good fundamentals and a good trajectory as a car company. They make a product that people want, that sells well even with large margins, for which demand is expected to continue to grow. The fact that the market ran up its stock price till the P/E went stratospheric doesn’t make their core business any less viable. If Tesla stock crashes, it likely won’t be because of anything the company did, but because all bubbles eventually burst, and just about every market, from equities to crypto to trading cards and real estate is heinously overvalued right now and due for correction.
    - kgwgk 5y ago
      > The fact that the market ran up its stock price till the P/E went stratospheric doesn’t make their core business any less viable. Of course the highly inflated stock price doesn't make their business less viable. It does make it more viable! They've raised large amounts of capital at very favorable terms. In any case, the point is that the price is quite dettached from those "good fundamentals".
  - lotsofpulp 5y ago