Stocks and Trading Thread - Channeling your inner Mono

[Tamas]

Also, Yi, concluding that stocks are overinflated doesn't mean that it is a bad idea to invest in them, or that those who have made a mistake.

[grumbler]

Also, Yi, concluding that stocks are overinflated doesn't mean that it is a bad idea to invest in them, or that those who have made a mistake.

It's not a mistake so long as the investor understands the volatility of the price of the asset he or she is buying.  The problem with bubbles is that this idea gets lost in the rush to "buy before the price goes up even more."

If you truly believe that a stock is over-inflated in value, the only reason to hang on to it is because you think that you are smarter than the market and can time your sale of the asset better than the average buyer, so that you can sell at or near the price peak.  Otherwise, you should sell the overinflated stocks and use the money to buy underappreciated stocks.

[Josquius]

There is an immense amount of capital/money available; but instead of funding new firms and industries it is inflating existing stock and property prices. If the economy was more innovative then people would have better things to invest in.

I think that is what Tyr is saying; I'm inclined to agree if it is.

A bit of a problem in the world at large for decades to some extent. But now more than ever we are in this situation.

[Admiral Yi]

There is an immense amount of capital/money available; but instead of funding new firms and industries it is inflating existing stock and property prices. If the economy was more innovative then people would have better things to invest in.

I think that is what Tyr is saying; I'm inclined to agree if it is.

A bit of a problem in the world at large for decades to some extent. But now more than ever we are in this situation.

So you guys think more money should go into Venture Capital funds? 

[Josquius]

There is an immense amount of capital/money available; but instead of funding new firms and industries it is inflating existing stock and property prices. If the economy was more innovative then people would have better things to invest in.

I think that is what Tyr is saying; I'm inclined to agree if it is.

A bit of a problem in the world at large for decades to some extent. But now more than ever we are in this situation.

So you guys think more money should go into Venture Capital funds? 

That could be one way. Or a better system for mico-investing, particularly locally, could be great. Or a better system for mature companies to raise funds by selling new options of some form. Or go completely away from the stock market and people just spend more on stuff for their life; a very tricky one.  There's probably a lot of good ideas that haven't come to me in a few minutes of quick thought.
The problem is obvious. The solution less-so.

[Admiral Yi]

Tesla up another 10% after the split.

[Tamas]

Which I guess you would argue is perfectly rational for a company making niche cars for the rich.

[Valmy]

Tesla up another 10% after the split.

Fuck. If only I ever had money to invest.

[Admiral Yi]

Which I guess you would argue is perfectly rational for a company making niche cars for the rich.

I wouldn't argue this because they make mass-market cars too, and I don't see any connection between the market they serve and the share price rising after a split.

[Admiral Yi]

Fuck. If only I ever had money to invest.

I understand now how teh gays get so rich.  No kids, plenty of disposable income.

[Valmy]

Fuck. If only I ever had money to invest.

I understand now how teh gays get so rich.  No kids, plenty of disposable income.

Well to be fair I was in even worse shape back when I had no kids

[Tamas]

Which I guess you would argue is perfectly rational for a company making niche cars for the rich.

I wouldn't argue this because they make mass-market cars too, and I don't see any connection between the market they serve and the share price rising after a split.

Which one is their mass market model?

[Admiral Yi]

Which one is their mass market model?

3

[Tamas]

Which one is their mass market model?

3

Mate, that STARTS from £42k. That is not mass market.

[Admiral Yi]

Mate, that STARTS from £42k. That is not mass market.

It's a lot cheaper outside You Kay.  32ish?  I know they discounted off that price in China, don't know if they did elsewhere.