Viewing a single comment thread. View all comments

Pengufen t1_jeefat4 wrote

That's just something people like Jim Cramer say: "The market is fOrWarD lOOkInG" oOOOoH. They aren't, plain and simple. 2 banks crash and the market goes into a frenzy, one week later it's booming and doesn't care whatsoever about what just happened. Just look a chart of spy before and during 2008, the market didn't start falling until the grim reaper was staring them in the face and no one could deny crisis was upon us.

20

MmmPeopleBacon t1_jeff2bg wrote

You seem to know how to write and maybe even read. Should probably work on your reading comprehension though. And I think Jim Cramer is as big of an idiot as the next guy but in this instance you are truly regarded.

When people say markets are forward looking what they mean is that they try to predict tomorrow's profits based on past and present information. A bank collapse represents new information that wasn't available previously. It takes a while for that information to fully work it's way through the market because it requires new analysis.

−1

iggyphi t1_jefubff wrote

well, we have this thing called the internet now. where people can instantly communicate with each other across the globe. it would take less then a minute for all that to happen

2

MmmPeopleBacon t1_jefx8h8 wrote

Clearly you've never built a financial model and needed to change the underlying parameters and then needed to rerun the model.

0

iggyphi t1_jefxcil wrote

hilarious of you to assume they haven't thought about that before hand

1

MmmPeopleBacon t1_jefyuij wrote

You're a dumbass. Any model will have a range of assumptions a good model will account to solve extent for those assumptions changing. However if a new event happens they alters the likely range of those assumptions then updates need to be made.

1

iggyphi t1_jefz989 wrote

im the dumbass but you can't think two steps infront you that other people might of already thought of variable. like someone almost gets paid to come up with all the different variables and solutions to them so that its ready for when it happens

2

MmmPeopleBacon t1_jefzjwj wrote

You think they are going to perfectly predict every variable? No they aren't thus the need for updates. Read a fucking introduction to finance pamphlet you absolute fucking regard

1

iggyphi t1_jefzsrn wrote

ah right, because you can't think of it, other can't either. nice one.

1