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> I don't think FAANG, Berkshire, Exxon and Pfitzer are going to notice if all of crypto dropped to zero right now. If some investors are invested in both FANN
by netheril96 4y ago
> I don't think FAANG, Berkshire, Exxon and Pfitzer are going to notice if all of crypto dropped to zero right now.
If some investors are invested in both FANNG and crypto, when they face margin call in the latter they may have to sell the former to cover their position.
- chii 4y agodo most investors really take out margin loans to buy stocks? I can understand _some_ investors do it, but i'd imagine it's not a majority.
- netheril96 4y ago> do most investors really take out margin loans to buy stocks? In the scenario I describe, those investors take margin loans to long or short crypto, and when they fail, they sell other assets to cover themselves. This is just one possibility I describe. > but i'd imagine it's not a majority. No one knows. It may take only one institutional investor who lost a gigantic amount of money in crypto trading and were therefore forced to sell stocks to shake the stock market.