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You can't discount the impact this will have on global stock markets and what that may do to both individuals and, more importantly, pension funds, as a large s
by passwordoops 1y ago
You can't discount the impact this will have on global stock markets and what that may do to both individuals and, more importantly, pension funds, as a large swath of people are retiring
- HelloNurse 1y agoDamage is unavoidable, we can only hope that it happens to someone deserving. Innocent individuals and pension funds still have time to retreat; if they don't it will be their fault.
- azan_ 1y agoWe are moving towards gerontocracy - if pension funds will have large losses it’s very likely that young, working age people will be taxed extra heavily to keep the QOL of pensioners.
- zmgsabst 1y agoThat would likely lead to a revolution: Millennials are 30-45 and they’re not in a good place; neither is Gen Z. We’re already seeing revolutions elsewhere — and it’s likely that trying to loot them further by generations who sold out the nation will simply lead to social collapse.
- jfil 1y agoHave you ever battled an 87-year-old wearing mechanized battle armour? They're crazed, hopped on speed, eyes goggling in their sockets A pack of 3 oldies burst through our perimeter one winter night... the screaming woke me up. Outside my tent the forest was lit up red by our laser blasts, trying desparately to take them out. We thought that a revolution would be a good idea, but an upside-down population pyramid is a hell of a thing when you're on the bottom.
- mnky9800n 1y agoYes but this is by design. Wealthy people want bubbles, when they pop, you can gobble up all the value at all time lows. Then you hold until you don't feel like it anymore as the market goes back to growing. You see this as how private equity has bought up real estate across the USA to turn into rentals after 2008, for example.
- azan_ 1y agoAren’t extremely wealthy people that wealthy due to the valuation of their stock? IIRC generally the higher the networth, the higher share is kept in stocks
- markus_zhang 1y agoI suspect $$ is just a number for them. Being able to control more resources is the ultimate game. You gotta have zillions of $$ to join the tournament, though.
- cjrp 1y agoThey can move their wealth from stocks to gold, for example. Look at the price of gold.
- lesuorac 1y agoMore importantly you keep the portfolio semi-balanced. Just using Google / Gold as a comparison [1]. Assume you have 100 units of each. In late 2021, Googs gone up ~100% so you have to rebalance because you have $200 in Goog and $92 in Gold. So lets say you rebalance to 80 Goog (160$) and 144 Gold ($130). In late 2022, Googs gone down ~40% so you have to rebalance because you have $96 in Goog and $141 in Gold. So lets say you rebalance to 100 Goog ($120) and 118 Gold ($112). So over the course of 2 years Goog has gone up 20% and Golds gown down 5% but your investments are overall up 16%. Obviously a 100% Goog investment is higher but with more risk. If you didn't do any rebalancing then you have a gain of 7.5% (100*1.2 + 100*0.95 = 215) [1]: https://www.google.com/finance/beta/quote/PHYS:TSE?comparison=GOOG%3ANASDAQ&type=line&window=5Y https://www.google.com/finance/beta/quote/PHYS:TSE?compariso...
- limpbizkitfan 1y agoPerhaps most of the impact could be burdened on NVIDIA investors, employees, leadership, or OpenAI investors, employees, leadership, etc., etc.