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EWJWNNMSG t1_j1ytid4 wrote

People when stocks go up 700% during the greatest pandemic in hundreds of years: Yeah this is normal I'm a genius I deserve these gains

People when stocks go down -30% because we have to return to some level of normalcy: Wow this is bullshit I do not deserve this why are these regards destroying the economy.

Here is a video for all of you [1] I suggest you watch it


MyFingerYourBum t1_j1yzr25 wrote

Me losing money in both situations: img


Sharcbait t1_j1zgyom wrote

When we print 1/3 more total amount of money in a year: LOL printer goes BRRRRRRR.

When inflation is sky high. Wtf who would do this to us.


Boshva t1_j1yyu0a wrote

Especially the economy is somewhat fine rn, except inflation. The stock market is something else tho.


lightning_whirler t1_j1znd4r wrote

That's like saying grandpa is fine except for the heart attack he's having right now.


hyperthymetic t1_j1z42fv wrote

Inflation adjusted wages have been in decline for well over a year.

You can stick your head in the sand and accept the govt redefining recession all you like, but at least do the rest of us a favor and stop poasting


Boshva t1_j1z4gr9 wrote

Sure, still better than 2008 style, where everyone loses its job and gets his home foreclosed.

Also whats your argument here? Printing money to slow the inflation?

Also workers wages havent kept up with productivity since 40 years. But thats Jeromes fault too right?


ameldrum902 t1_j2333sl wrote

I agree with it all except the return to normalcy. In Canada we are heading dead straight to a housing collapse. People are far too leveraged and this is going to be a messy correction.


hoopaholik91 t1_j1ztkft wrote

If you're going to make an argument at least try to be slightly less biased when pulling numbers out of your ass


EWJWNNMSG t1_j200lup wrote

Tesla at the height of february 2020 before the first corona dip, split adjusted: Between 40 to 60€. Tesla at its height 2021: €350. That's almost 600% (well an increase of 500% of course) if you take the absolut height from 60 to 350.

It's almost comical.

But you are correct, that's only Tesla. Companies like Apple or Amazon only doubled during the same time period.


Carvana went from 87 pre pandemic to 315 at its hight in 2021, almost 400% lol.

Apple is now so oversold it has a comical dividend yield of about 0.7%, Microsoft is at like 1%. That is comically low. How much do you all expect this company to grow? How many dividends do they have to pay out to justify this price? It's laughable.

Edit: Most likely most of you don't even want dividends. That makes me laugh even harder then what the fuck are you paying for if not for the company to transfer its earnings to you


gumbo_chops t1_j207fbv wrote

Most people here don't care about dividends since they aren't retiring anytime soon and don't need to rely on them as a source of income. Personally I would rather a company buyback shares than pay a dividend s to avoid taxes in non retirement accounts.


EWJWNNMSG t1_j2092bs wrote

It's the classic question: Do you want to make money through the company, then dividends are unavoidable. Or do you want to make money through the other market participants - then buybacks can increase the amount that other people have to pay for your share. Let's say the company buys back 10% of the shares that are out there then I am willing to say that they contribute about 10% of the value that another person has to pay you for it.

In the name of tax avoidance we have now created a range of companies that do not pay dividends, which has always been the way. But what is a alphabet share? What does it do? What is its relation to the company? What is the value of it if not the sum of future dividends, their growth in relation to inflation and discounted the further away they are in time?

For me a share is a machine that I have to pay for that then pays me money every year. I pay €10, and then get 1 + 1.1 + 1.2 + 1.3 etc. From this value I create a value I am willing to pay for this share.

What are you willing to pay for a Amazon share if not that? What is the value of it? What do you get from Amazon that makes you want to buy this share?


eazy-83 t1_j1z1fnq wrote

What's your point?


EWJWNNMSG t1_j1z295h wrote

That the stock market is not being destroyed, it is starting to get back to a sane level of normalcy and another -30% on all the hype stock might do us all good


eazy-83 t1_j1z2ukm wrote

What is normalcy?


EWJWNNMSG t1_j1z34pl wrote

Guess I am wasting my time here have a nice day


eazy-83 t1_j1z3pb9 wrote

And you just proved my point. You can only accept your normal. Fact is this, your idea of normalcy isnt the same as others. What is JPow doing? He is literally trying to force people to lose jobs to bring down inflation, right? How is that normalcy? So there are people out there who are trying to live their "normal" lives, and then all of a sudden they get laid off just so we can get back to "normalcy?" If you don't find that abnormal, then you yourself are a waste of time.


Qzy t1_j1zc7n9 wrote

Normalcy is not high inflation and bubble valuated companies like tesla.


eazy-83 t1_j1zewg6 wrote

Actually it is. Because you are basing "normalcy" before pandemic levels. But the problem is, is you're negating the fact that normalcy then is different than normalcy now and completely ignoring the fact the the fed had printed 80% of the money(as of Dec2021) that is in existence in the last 2 years. Meaning that there is 500% the amount of money in the economy than there was in 2019. So if the total money is going to inflate, then it is actually quite normal for everything else to inflate with it. It's simple math. For things to not inflate, would actually be quite abnormal.


Qzy t1_j1zlfk7 wrote

If you can generate $100,000 per year prepandemic, I would value your life 10x$100,000. Post pandemic due to inflation you now generate $110,000 - meaning you just gained 10% in your total valuation. It doesn't matter how much more money is printed for your valuation to change if it does the market is hoping for further increase in the future - but that wont happen because inflation will stop soon.


Fizmo1337 t1_j1zav3e wrote

a recession is good to get all the useless zombie companies and bad companies out of business


eazy-83 t1_j1ziee0 wrote

Theoretically I would agree, the problem is, is that it doesn't matter if it's a good or bad company because is going to protect the certain companies to protect economic hierarchy. We saw this back in 2008 recession


Quasar-stoned t1_j1z473f wrote

You give money to someone so they grow and you earn some premium for lending. It’s criminal to ask citizens to invest and force a recession. This is just bad policy and bad governance.


EWJWNNMSG t1_j1z4vsd wrote

With your logic any value of any stock is a fair price, investments always go up. There are bad investments, there are overevaluations, there are bad businesses. Blindly investing because stocks only go up is the most regarded strategy out there most people have no idea what the fundamentals of a company are or what a fair price for a stock is. What's criminal is people always hyping the most unbalanced businessmodels out there because the stock grows faster than those with real business models. Every few decades people need to learn this lessons because for some reason people never learn it. So be it. This is not a crisis of the fed or of government, this is a crisis of bad investments in shady business and overvaluation


Quasar-stoned t1_j1z7b6i wrote

You’re right, can’t argue with that logic. These are difficult times for certain strategies which rely on absence of the surprises that we had this year. In an ideal world, stocks of sound businesses should always go up on a decent timeframe and maybe government should innovate to not mess the macroeconomics with stupid policies.


Oenones t1_j221pms wrote

You need to get your fucking head checked if you believe this. You can make this argument when it's a few dozen "investments" but when it's a few thousand your clearly showing your head is up your ass.