Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Investing
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-05-2015, 02:16 PM
 
Location: San Diego California
6,795 posts, read 7,296,130 times
Reputation: 5194

Advertisements

Quote:
Originally Posted by mizzourah2006 View Post
I guess you can speak in generalities, but most boomers I know will likely be leaving large sums of money to their children.

I don't see a decreasing population and an aging population as being the same at all. In one you actually have fewer people to add to the market itself. In the other you may have less money per individual, but more individuals who can still contribute less. It could be a net positive for the market economy, rather than a net negative. If 100 people are contributing $100 a month to the market now and in the future you have 250 people contributing $50 a month to the market.
The fact is that the bottom 80% of the population contribute little to the stock market, less than 15%. The value of the stock market is supported by the wealthy, and the wealthy have the majority of their wealth in paper assets. The margin levels in the market are at all time highs, even higher than 2007, personal debt is higher than 2007. Government debt is higher than 2007. It is a recipe for failure.

The oil market is a perfect example of the economy as a whole. The oil prices were held at high levels for years despite falling demand by way of market manipulation. That manipulation however was not able to keep oil prices inflated indefinitely and we are now seeing what happens when a manipulated market finally succumbs to the overwhelming force of the market.

The stock market has been artificially manipulated by central banks ever since 2008 and will soon be subject to the same reality as the current commodity markets. While it is possible to manipulate a market in the short term, no market has ever in history been successfully manipulated in the long term.
Reply With Quote Quick reply to this message

 
Old 01-05-2015, 02:20 PM
 
26,194 posts, read 21,625,027 times
Reputation: 22772
Quote:
Originally Posted by jimhcom View Post
The fact is that the bottom 80% of the population contribute little to the stock market, less than 15%. The value of the stock market is supported by the wealthy, and the wealthy have the majority of their wealth in paper assets. The margin levels in the market are at all time highs, even higher than 2007, personal debt is higher than 2007. Government debt is higher than 2007. It is a recipe for failure.

The oil market is a perfect example of the economy as a whole. The oil prices were held at high levels for years despite falling demand by way of market manipulation. That manipulation however was not able to keep oil prices inflated indefinitely and we are now seeing what happens when a manipulated market finally succumbs to the overwhelming force of the market.

The stock market has been artificially manipulated by central banks ever since 2008 and will soon be subject to the same reality as the current commodity markets. While it is possible to manipulate a market in the short term, no market has ever in history been successfully manipulated in the long term.


Margin debt is at a high and so are asset values. Do you have access to equity percentages? That would be more useful
Reply With Quote Quick reply to this message
 
Old 01-05-2015, 03:11 PM
 
Location: San Diego California
6,795 posts, read 7,296,130 times
Reputation: 5194
Quote:
Originally Posted by Lowexpectations View Post
Margin debt is at a high and so are asset values. Do you have access to equity percentages? That would be more useful
I am not sure what you mean by equity percentages.
Reply With Quote Quick reply to this message
 
Old 01-05-2015, 03:17 PM
 
106,817 posts, read 109,039,935 times
Reputation: 80246
markets will do just fine. most of the markets are dominated by institutions ,pension funds , the wealthy etc. they are not selling stocks to live on .

baby boomers still need much of the equities they hold to survive and what they do sell will span decades.

baby boomer kids stand to inherit a trillion dollars which much will stay in investments.

foreign investors are flooding our markets .

we are the best house in the worst neighhborhood.
Reply With Quote Quick reply to this message
 
Old 01-05-2015, 03:29 PM
 
26,194 posts, read 21,625,027 times
Reputation: 22772
Quote:
Originally Posted by jimhcom View Post
I am not sure what you mean by equity percentages.

Equity percentages, meaning the amount of equity in a margin account. Most house calls start at 30% equity and fed calls start at 25%. If in the 2007 time frame those record margin balances went along with 50% equity and now even higher total margin balances have 80% equity then the growing margin balances aren't nearly as meaningful. It identifies the amount of leverage being used
Reply With Quote Quick reply to this message
 
Old 01-06-2015, 07:31 PM
 
Location: San Diego California
6,795 posts, read 7,296,130 times
Reputation: 5194
Quote:
Originally Posted by Lowexpectations View Post
Equity percentages, meaning the amount of equity in a margin account. Most house calls start at 30% equity and fed calls start at 25%. If in the 2007 time frame those record margin balances went along with 50% equity and now even higher total margin balances have 80% equity then the growing margin balances aren't nearly as meaningful. It identifies the amount of leverage being used
It is the total amount of margin debt that is higher now, I do not know the percentage by account.
Reply With Quote Quick reply to this message
 
Old 01-07-2015, 11:43 PM
 
Location: Texas
2,847 posts, read 2,521,583 times
Reputation: 1775
never forget that there must be someone on the other side of every trade. If things do start to go south it may not be an easy out, or speculative investments in a tight market may be difficult to liquidate.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Investing

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top