Do You Trust the Stock Market?

[Cassandro]

Do you trust the stock market? The reason I ask this is because of the exaggerated swings in the market based on seemingly irrational reactions to political events rather than sound financial analysis. As a result of these swings, huge amounts of money are gained or lost in short periods of time. Who are the knaves and fools playing this game?

 

[Lockback]

Do you trust the stock market? The reason I ask this is because of the exaggerated swings in the market based on seemingly irrational reactions to political events rather than sound financial analysis. As a result of these swings, huge amounts of money are gained or lost in short periods of time. Who are the knaves and fools in this game?

I've never trusted it. I do have money in it, of course, through a financial management company but have never trusted the market shifts and unrealistic enthusiasm for certain products, CEOs, etc.

 

[Natural Citizen]

It's one big bubble of distortion. Dangerously distorted at the moment.

 

[Crepitus]

Do you trust the stock market? The reason I ask this is because of the exaggerated swings in the market based on seemingly irrational reactions to political events rather than sound financial analysis. As a result of these swings, huge amounts of money are gained or lost in short periods of time. Who are the knaves and fools playing this game?

The market is all about irrational reaxtions.

 

[my2¢]

Years ago I read some financial reports are made available to certain investment firms seconds before they are released to the public. Because I was an occasional investor in it for the long haul it didn't hinder me. But if I was an active daily trader, I probably would have a different outlook.

 

[Polishprince]

Stock Market traders hate uncertainty, that's the reason for the volatility.

Also, the computer driven trading just stirs it up even more.

 

[Lockback]

Stock Market traders hate uncertainty, that's the reason for the volatility.

Also, the computer driven trading just stirs it up even more.

Exactly.

 

[jackflash]

Do you trust the stock market? The reason I ask this is because of the exaggerated swings in the market based on seemingly irrational reactions to political events rather than sound financial analysis. As a result of these swings, huge amounts of money are gained or lost in short periods of time. Who are the knaves and fools playing this game?

No.

 

[JGalt]

Do you trust the stock market? The reason I ask this is because of the exaggerated swings in the market based on seemingly irrational reactions to political events rather than sound financial analysis. As a result of these swings, huge amounts of money are gained or lost in short periods of time. Who are the knaves and fools playing this game?

The market reminds me of a bipolar girlfriend I used to have. One day we were having hot sex and the next day she was trying to punch me in the face.

Damn, I miss her.

 

[Lockback]

The market reminds me of a bipolar girlfriend I used to have. One day we were having hot sex and the next day she was trying to punch me in the face.

Damn, I miss her.

That made me laugh out loud!

And, brother, I can sooooo relate. I had a similar girlfriend.

 

[Lockback]

The market reminds me of a bipolar girlfriend I used to have. One day we were having hot sex and the next day she was trying to punch me in the face.

Damn, I miss her.

True story:
I'm lying in bed with my super hot girlfriend (think of Victoria Principle of the Dallas TV show) and I said to her, "You know, honey, I don't think I've ever been this happy. We get along so beautifully. We have similar senses of humor. We like to do the same things. It's amazing."
And she says, "Yeah. And that worries me."

 

[EdwinAMartin]

It can be a nice living, and these days people can trade from the comfort of their home. It is just gambling, though, and 'experts' lose their shirts all the time. Don't get carried away and it can be rewarding; it not hard to beat the interest paid on CDs, anyway. I prefer dividend paying stocks myself, and have a small sum of 'mad money' I play with for fun. I my start playing with options in a few weeks, writing a few on stocks I own and can cover. I avoid playing on margin like the plague.

 

[egp320i]

Do you trust the stock market? The reason I ask this is because of the exaggerated swings in the market based on seemingly irrational reactions to political events rather than sound financial analysis. As a result of these swings, huge amounts of money are gained or lost in short periods of time. Who are the knaves and fools playing this game?

not sure it's a matter or trust like your husband or wife
you invest, if the company keeps making a profit it goes up in value
you need to be vigilant and watch your stocks, any sign they
might miss the wall street estimate at the quarter it will go down

that could be temporary, next quarter record profit and it goes up

what you don't want is 3-4 quarter in a row of missing the mark

 

[The Duke]

Do you trust the stock market? The reason I ask this is because of the exaggerated swings in the market based on seemingly irrational reactions to political events rather than sound financial analysis. As a result of these swings, huge amounts of money are gained or lost in short periods of time. Who are the knaves and fools playing this game?

People that do.
I usually go by what this old Jewish Investor dude taught us on a field trip in Jr. High.
Keep it simple.
#1) Make sure they're not going to go out of business.

 

[drudge X]

I parked a sizeable chunk in Nvidia.

 

[Synthaholic]

Depends on what you're investing in, I suppose. I remember Caterpillar was $107 during Covid, and now it's over $700. Costco is now back over $1,000, but I remember it being at $125. Two companies that you could pretty much guarantee that you weren't going to lose money.

Hell, a few months ago I was unpacking a box that had been in storage and the items were wrapped in the financial section from a newspaper from the early 2000s. Apple was at $6.00 per share. This was before the first iPod.

 

[Synthaholic]

I parked a sizeable chunk in Nvidia.

It keeps fluctuating wildly, and I'm not sure why. But Tesla fluctuates wildly, also. The market is operating on a climate of fear right now. And then there's the uncertainty of what the Mad King will do on any given day that could screw up your company's whole 5-year forecast.

 

[EdwinAMartin]

A lot of foreign money is flooding in every year, bloating the markets beyond reality.

 

[Dorian Mode]

That made me laugh out loud!

And, brother, I can sooooo relate. I had a similar girlfriend.

I think we all went through more than a few of them before we found a nice conservative girl. During college there were hundreds of hot European girls all over the place and I stopped dating psychotic American girls altogether. I eventually ended up marrying an amazing woman from Milan, Italy.

 

[The Duke]

I parked a sizeable chunk in Nvidia.

Nvidia is very inflated.
For some reason, they didn't even produce anything for 2 years and their stock kept going up, and that's hokey as all can be to me.
What does Nvidia do, according to you?
I've never seen a company that produced nothing that they were supposed to for 18 months or more have their stock go up steadily like that.
There's some manipulation going on there.