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Are they putting their cash into gold or similar then? A market crash will also coincide with the US dollar crash, no? Or is a market crash separate from the US
by loceng 2y ago
Are they putting their cash into gold or similar then? A market crash will also coincide with the US dollar crash, no? Or is a market crash separate from the US dollar failing?
- jjtheblunt 2y agoIf Berkshire Hathaway sells 1 million shares of AAPL for N dollars per share, and the market drops the price to .8 * N dollars per share, he just buys more shares back with those same dollars, for example. It would be a very Buffett thing to do, because shares produce dividends per share, so increasing share count is its own strategy.
- lazide 2y agoThey are not necessarily correlated - but often can be. [https://www.fidelity.com/learning-center/trading-investing/strong-dollar#:~:text=While%20a%20strong%20dollar%20may,want%20to%20diversify%20their%20portfolios https://www.fidelity.com/learning-center/trading-investing/s....]
- ruune 2y agoA bubble burst or similar doesn't have to crash the whole economy. It definitely can, especially when it's stuff like financial or real estate. A tech bubble burst would devalue many of the highest valued stocks but doesn't have to take the entire USD down with it. That being said, I haven't studied economics and am very much a layman. So if someone wanna correct me, please do!
- rsdfvn1099 2y agoThere's even a precedent. https://en.wikipedia.org/wiki/Dot-com_bubble https://en.wikipedia.org/wiki/Dot-com_bubble Sucked for California. Everywhere else was fine. But traffic was so much better in the bay so there's that silver lining...