Comment by ath3nd

Comment by ath3nd 2 days ago

The media was saying nfts are a reasonable investment and web3 is the future, so I am not sure if they have any remaining credibility.

We are at the awesome moment in history when the AI bubble is popping so I am looking forward to a lot of journalists eating their words (not that anybody is keeping track but they are wrong most of the time) and a lot of LLM companies going under and the domino crash of the stocks of Meta, OpenAI to AWS, Google and Microsoft to Softbank (the same guys giving money to Adam Neumann from WeWork).

Gravey a day ago

Can I ask why you would be looking forward to the stock market crashing? Vindication?

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badpun a day ago

I personally have just 20% of my net worth in stocks, as they seem very expensive right now. A crash would allow me to increase my allocation at reasonable prices.

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keernan a day ago

Who benefits from high stock prices?
Certainly not people regularly buying stocks or stock ETFs/Funds.

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- Gravey a day ago
  
  I suppose if you’re operating on the assumption that tech stocks are vastly overinflated then this makes sense. Otherwise I would expect the people that are regularly buying these securities would be happy that they’re increasing in value, no?
  
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  hdgvhicv a day ago
  
  The ponzu scheme of SPY is great until it stops. 10% of America’s payroll gets lumped into it each month and generational wisdom is you get a 10% ROI despite the economy growing 2%.
  At some point that will collapse, and it won’t be pretty.
  
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  keernan a day ago
  
  No. The 'goal' of investing (e.g. regularly buying) means attempting to own as many shares as possible. That is achieved by buying low and selling high. Buyers benefit from lower prices, not higher.
  So many investors get this concept wrong. I suppose they get excited because what they bought went up in value and they have a sense of being enriched. But, that is backwards. That is what they want 20-40 years from now when it will almost certainly be the case that prices are not just higher, but much higher, than today. But, when they are buying shares, the goal is to pay the lowest price possible. If I am 20 years old, I am screaming: crash and burn baby! Crash and burn! Gimme those shares at 50% off yesterday's price.
  
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ath3nd a day ago

With stock prices divorced from reality, the ones who benefit are the having the funds to buy in volume, the gamblers, and the ones hyping the stocks and creating the illusion of profitability and growth. Years ago it would have been unthinkable to have so many unprofitable companies with unclear path to profitablility having such a high valuation, but we have normalized frenzied gambling as a society.
The current absolute balloon of a market is about to pop, and sadly, the people who hyped the stocks are also the ones knowing when to jump ship, while the hapless schmucks who believed the hype will most likely lose their money, along with a lot of folks whose retirement investment funds either didn't due their diligence or were outright greedy.
In a way, as a society we deserve this upcoming crash, because we allow charlatans and con people like Musk, Zuck and Sam to sell us snake oil.

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