Stocks tank again in final hour of trading

Discussion in 'Stock Market Forum' started by MalorieJX, Aug 24, 2015.

  1. MalorieJX

    MalorieJX Well-Known Member

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    The house of cards collapses again..The value of stocks is obviously some confidence game based on nothing except fad and hype...How can a stock be worth so much less in just a week? It means it was overvalued to begin with...Selling way beyond what it was actually worth..The market is manipulated to steal money...Large investors and funds gradually bid up the price, get the idiots to buy and then pull the bottom out from under the stock in a mass selloff timed for those best placed to benefit. The individual investor is ruined by the correction while the big holders bail just in time...and make a killing, plus they then buy up the good stuff afterwards cheaply and eventually get even richer. Just a casino for the wealthy..
     
  2. BerndFoll

    BerndFoll Well-Known Member

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    Modern economies are mostly based on imaginary values of goods and services, especially the services! If you add up the market value of all the equities of all the companies traded in the share market, their value will be many, many times the value of actual goods/services produced by them! Also the money made or lost in trading on the shares is many times more than actual profits/losses of the companies! Real money is made in the shop floor not the stock exchange floor! At some point, we don't know yet, because we don't understand what sustains this madness or what will #$%$ the bubble, things will fall back to reality! the size of the economy is a hugely bloated by the non-contributing sector! Example: if there are 10 housing loans in an economy totaling $10 million plus another $90 million in instruments(all sorts of combinations of papers combining/re-arranging the loans) that originally represent the actual loans, the economist will say the mortgage market market is worth $100 million. Just BS, it always remains only $10 million! A bigger burst is round the corner, not sure if it is going to be this time!
     
  3. petesede

    petesede Guest

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    That is only true if you are gambling on very small market cap companies... or the so called ´penny stocks´... which is why most real investors avoid them like the plaque. Investing in penny stocks is like playing a slot machine. Every once in a great while you can get lucky and be one the same side as the guys manipulating the stock price, but usually you are the sucker on the outside just losing money.

    As far as the last few weeks.. you should really do some reading. This is mainly being caused by China. China is killing themselves right now, and at the same time causing some wounds to us. But there is no way China is doing this on purpose because they are hurting themselves far more than they are hurting us.... and they are killing their future at the same time. Imagine a man getting thrown overboard and drowning, but on the way down he grabs your arm and gives you a nice scratch.. that is basically what is going on with China and the USA right now.
     
  4. baudwalk

    baudwalk Senior Investor

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    http://video.cnbc.com/gallery/?video=3000410815

    Worst is over: Tom Lee

    "Tom Lee, FundStrat Global Advisors. gives investors an idea of typical market behaviors after corrections as well as his sector picks, which include healthcare and technology."

    This analysis airied on CNBC Fast Money a few minutes ago. It is an analysis of the behavior of past corrections and recoveries. It is quite interesting, in my opinion.

    I find this kind of information to be more helpful than the spate of depressing numbers presaging gloom and doom. I recognize China is the fly in the ointment, and predicting what the PBOC will do in the short term is akin to juggling knives while blindfolded. Nevertheless, this too will pass.

    HTH. YMMV.
     
    Last edited by a moderator: Jul 8, 2016

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