Stock market down 530 points today (income, recession, investments, prediction)
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A stock investor is part owner of the business. He has invested in the business. Who gets the capital is a detail. The $ goes into the funds for the business. The dividends you get (as a part owner) comes out of the proceeds of the business.
The being "part owner" mantra is true, but seeing as though you control nothing it's pretty much not even worth mentioning.
When the company first goes Public, that's when they are making their money from the issuance of Stock.
Once the Stock has been put on the market, the money goes back and forth between different traders of the Stock. So when you go out tomorrow and buy 100 shares of APPLE, you aren't investing in APPLE the company, you are paying money to the person who currently holds 100 shares of APPLE stock so you can now hold it, hope for the paper asset to appreciate, and then sell it off to another buyer with a profit.
Stocks consist of two markets: primary and secondary. The primary market, also known as the new-issues market, allows new or growing businesses to sell stock to raise money. Investors in IPOs can later sell the new stocks in the secondary market, allowing buyers and sellers to trade stocks quickly and effectively. The New York Stock Exchange (NYSE) and Nasdaq are the major secondary markets in the United States. On these exchanges, investors trade stocks that they already own, and the company which initially issued new stock doesn't receive any additional money from this activity.
How you guys have been investing in STOCKS for this long and don't understand how the Stock Market works, is insane. Maybe that's why you guys refer to Index Funds so much, because you don't know how the Market works and can't truly value a Stock?
I don't know it all but they say that we don't have that much money in fact .
Banks are not allowing a lot of cash out any more because it just isn't there.
So much is based on credit, that all there really is ,is a credit list on paper, that value is assigned to nothing less than(credit) a paper promise to pay ,and that's not handling cash at all.
Industry should have been our "gold standard " something of real value that is built and protected and real and transferable.
But our government protected neither and gave it away and drove it out and corruptive environmentalists make it impossible to manufacture here .
The hypocrisy of trading in gold ,yet not allowing it to be smelted here, is just greed ,not a genuine concern for the environment.
There is no fix they are going to do, because the agenda is to destroy the country, not build it. New world order .
NAFTA was the first major building block in this process, opening wider free trade from other countries .forcing our manufacturing to diminish.
American manufacturers did it to them self as well make no mistake, other countries made us look really bad, and that has nothing to do with price ,but quality.
Ford cars on average are good for about 60k miles while the Toyota is good for 300-400K miles.
Ford pushed for an economy that is based on waste and there were people that bought in to it, and that was wrong.
Unions are partially to blame for inflated wages creating greater inflation down the line.
I guarantee you that the $15. dollar an hour is going to further weaken the dollar. It is only a bargaining chip for voters nothing more.
Any politician actually concerned about the country is going to dump the UN off into the ocean along with the environmentalists, and abandon the New world order garbage, and get back with improving manufacturing here, and close off free trade that is strangling us .
But that's a pipe dream .
I'm probably all wrong and it doesn't matter.
........... how the Market works and can't truly value a Stock?..........
By "truly value a stock", do you mean "truly value a company"?
If you do, you are spot on. There may be one or two around here who can or will read a 10Q, and almost no one who will invest based upon what he has learned. Most of the talk is about where the stock price will go, where it has been, and so forth.
If you have truly paid a fair price for your company, then things will take care of themselves. Even then, you have to be ready to bail out when the stock gets over extended.
If you would not buy the whole company, then you should not buy one share. And sometimes, when looking at the financials you uncover some very concerning information.
To simplify: Could a company with revenue of $3B, and a long term debt of $2B and rising, possibly be worth $30B? Tesla.
An even more intriguing question to me is: Why is George Soros buying BTU (Peabody Energy) after years of preaching against the horrors of using coal? The BTU financials are horrible. I don't have the answer, but I did notice that while the rest of the world reached for the aspirin bottle, BTU was up 50% for the week.
This is just a symptom of what is ahead we are in for a life changer and sadly the government ( with Trump, Cruz, Huck and a few others being exceptions) ,church and secular clueless will be unprepared and will be problematic ( their stinking body removal number one)!!
No, a 3% correction isn't a big deal. Happens all the time, average of three 5% corrections each year which this wasn't. If you can't handle it, it's best not to be in the stock market.
We don't have to be connected by the hip to that absolutely corrupt cesspool of filth... we can get rid of the Federal reserve, break up monopolies, shun mega corporations and rebuild more localized economies based on the exchange of actual goods rather than madmen trading numbers back and and forth twice a second.
I'm an up and comer, I'd like to get in for a low dollar and knock y'all off your high horses in the process. Win-win but i hardly know what i'm talking about.
Santorum said there's no other bubble, plenty of bubbles still to burst. Above said stock bubble and student loan/ higher ed bubble.
I'm an up and comer, I'd like to get in for a low dollar and knock y'all off your high horses in the process. Win-win but i hardly know what i'm talking about.
Santorum said there's no other bubble, plenty of bubbles still to burst. Above said stock bubble and student loan/ higher ed bubble.
There's a couple bubbles going on right now:
- Stock Market Bubble
- Student Loan Bubble
- College Degree Bubble
- Low Interest Rate Bubble
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