Take a look at this chart.
Now, here is what it means. Since 2009, the US central bank has been creating dollars out of thin air to prop up the banking system ("printing money" but not really, they pop into digital existence, but it's the same thing).
That money is trapped inside the FED system, but it leaks out to the member banks in the form of interest paid against it to the banks directly, and in the form of capital gains on bonds cycled through the banks in open market operations (sales of government bonds to banks).
Those lifelines created a psychological feeling of safety. That feeling has lasted for 7 years - long enough to create the sense that everything will keep going up forever.
When that happens, investors in stocks start to borrow to buy more shares. That's called "margin." So if I have $100,000 in cash, and a margin account, I can buy or sell up to $150,000 worth, and depending on my history and brokerage rules, maybe even $200,000 or more.
So I buy $200,000 of shares with $100,000 in cash and $100,000 in margin. Everything is fine. Even if it goes down to $100,001, everything is still fine.
But what if the value of the shares drops to $99,999?
There are two phone calls in the world that are as bad as a margin call - the one where the governor refuses to commute your death penalty, and the one saying you lost the divorce.
That's what the chart shows - margin debt against real stock gains. Looks familiar, right?
This is a FED-induced bubble and China popped it. But, so what if I get my margin call, and I can't pony up the extra dollar?
The brokerage seizes my shares and force-sells them without me.
That's how this down leg can get out of control. When the margin calls start coming in, the selling gets forced and it's not about the economy or the companies anymore. That's what happened in 2000 and 2008, in the stock market.
It might be happening now.
There are a bunch of companies in the S&P 500 that have zero exposure to China. So those stocks should not be following the broad market right? They should be doing better, because ex-China (excluded).
So why are KR, THC, and PNRA following everything else down? Because the selling is forced, or irrational, or both.
When those companies, and others like them who do zero business in China start to separate and out-perform the broad market, that will be the signal that the smart money is getting back in.
Will the S&P stay down today? I'm invested in uvxy and it goes up when the S&P goes down.
Cmon /pol/ I have like 300 invested in it
>printing money" but not really, they pop into digital existence, but it's the same thing
For fuck's sake.
>pirate jewish-produced flick
MUH INTELLECTUAL PROPERTY, GOYIM
>jews pirate currency
*sounds of kosher crickets chirping*
The Portuguese monkey trying to de rail thread
What do you base that on?
I wish I knew. Liscence plate says California so something there...
Shut the fuck up if you don't know what you're talking about.
Everyone has to start somewhere, anon.
OP, in light of the shit replies, I wanted to let you know that I read your post and comprehended the information you presented. I learned something new, thanks.
>Shut the fuck up if you don't know what you're talking about.
Well I saved 10k dollars by selling because of /pol/ memes, so I think I did alright despite not knowing what I'm talking about.
So the fed will print free money again. Intrest rates are killing the market, anon.
Did the social structures collapse yet?
Are there tonks on the streets?
Somebody answer me I dont intend to get off my ass for the next couple of hours
they're watching Fox Business Network from the debate last night and just see the "Market Alert" report.
Well if did know what you were talking about, you would see that with UVXY I'm investing in the volatility of the market, and not the market proper.
I understand that the market is shady and unreliable, so its a great opportunity for me to make a tight sum.
You can have my word, give me your paypal details and I'll give you mine.
But I know oil will drop even lower and faster than ur mums knickers when she's ready for a ploughing!
You know it's going to happen, all the while we are bailing out Scotland's oil industry, I have no idea how much longer we can keep up with it, the North Sea oil industry is operating and has been operating at a loss for quite a while now.
>mfw SNP retards still say their oil contributes the most to the UK
LOL!!!!! Fucking retards need stabbing for such stupidity.
You're looking at the economic network as if one chain link is enough to separate. They may not do business with China, but maybe they do business with companies who do.
oh I get it, after rereading your post
GOOD JOB :^)
Oil getting destroyed, down over 5% for yet another time this year
Brent at $29.33!
Oil in freefall the past 10 mintues
This is making me feel worse and worse about being an unemployed engineer graduate. Nobody fucking wants me and after this all ends I'll never be able to start my career.
I feel fucked.
>mfw this keeps happening every week
>mfw we go into worst depression in U.S. history
CNBC Money is freaking the fuck out. Have a giant Breaking News stock dump sign up on the air. Market is crashing, absolutely dumping in a near downfall.
WTF is going on? This looks terrible. There is this horrible sounding fear in their voices. Like this urgency to get off the air as fast as possible and go to their portfolio.
Crude just blew down below 30 a barrel? Where will it stop at?
Guys I am really scared.
That does not invalidate the hypothesis. Which worked in August by the way.
If Kroger can't get Chinese flashlights and $4 skillets for its hardware aisle, that has rounding-error level effects for its business.
Panera can get China-made chinaware anywhere. There is no shortage of plates and soup bowls.
Consolidated Edison gives exactly zero fucks about China, as does Tenet Healthcare. The only reason for these stocks to be trading with the market is dis-organized selling.
Just wait until 3PM guys, that's when hedge funds have to sell to balance their ledgers. It might even go lower!
Or rally because hedge funds can start buying. I haven't looked the buy/sell numbers but I doubt anyone is buying now
we must take the pain which is the medicine,
and we didn't do that in 08'
the solution is'>pic related
>mfw SNP said oil would NEVER drop below $120 per barrel
I am dying here, someone please if you find my sides, return them to Buckingham Palace.
fuck i hope we dont have hyper pepe inflation
please don't print any rare pepes
>muh gold standard
No it isn't the solution, the solution is war, another world war and it's inevitable now.
:^) Rev up those bug out bags, rev up those autism buxx you gon get conscripted bitch.
Dollars nigga. I basically just started investing.
It seems like its gonna keep doing down. Maybe keep holding uvxy or double down.
What if the Jew intervenes?
Out of the noodle bowl, into the deep fryer.
The three guys in the pic are trying to contact the conducter.
Dubs means we drop 600
>Wall street runs Washington
>Jews run wall street
>Federal Reserve runs free money
>Jews run Federal Reserve
>Banks run margin debt
>Jews run Banks
Therefore, Wall street knows that buying stock futures on margin is a sure thing, since Washington will launder every single economic statistic to support the bullish position and the Fed will print money for the 1% to buy stocks with.
I'm gonna go burn a brush pile while it starts raining what should I chant or throw in fire to invoke happening?
Doesn't Iran oil embargo end this weekend?
That means oil will go even lower.
U mad oilfags? Yeh u mad!
We are the recovery. Baby boomers and old Jews will lose money but the young will simply have a new bottom to climb up out of.
What the fuck did you just fucking say about me, you little bitch? I’ll have you know I graduated top of my class in the Navy Seals, and I’ve been involved in numerous secret raids on Al-Quaeda, and I have over 300 confirmed kills. I am trained in gorilla warfare and I’m the top sniper in the entire US armed forces. You are nothing to me but just another target. I will wipe you the fuck out with precision the likes of which has never been seen before on this Earth, mark my fucking words. You think you can get away with saying that shit to me over the Internet? Think again, fucker. As we speak I am contacting my secret network of spies across the USA and your IP is being traced right now so you better prepare for the storm, maggot. The storm that wipes out the pathetic little thing you call your life. You’re fucking dead, kid. I can be anywhere, anytime, and I can kill you in over seven hundred ways, and that’s just with my bare hands. Not only am I extensively trained in unarmed combat, but I have access to the entire arsenal of the United States Marine Corps and I will use it to its full extent to wipe your miserable ass off the face of the continent, you little shit. If only you could have known what unholy retribution your little “clever” comment was about to bring down upon you, maybe you would have held your fucking tongue. But you couldn’t, you didn’t, and now you’re paying the price, you goddamn idiot. I will shit fury all over you and you will drown in it. You’re fucking dead, kiddo.
This is big fucking news
>Wal-Mart pulls plug on smallest store format, shuts 269 stores
>Wal-Mart Stores Inc said on Friday that it was pulling the plug on its smallest store format, Walmart Express, and closing 269 locations globally, including 154 in the United States, in a restructuring that will affect 16,000 workers.
>Wal-Mart, the world's largest retailer, said the move would reduce diluted earnings per share by 20 cents to 22 cents, with nearly all of that to be booked in the fourth quarter ending this month. In November, the company forecast a full-year profit of $4.50 to $4.65 per share.
>Shares of Wal-Mart, which said the store closures represented less than 1 percent of its global square footage and revenue, fell 2.4 percent to $61.57.
Woke up to FOX talking about this. I heard 200 closed and 139 in the US. But 269 closing and 150+ in the US with 10,000 employees is fucking huge, especially as it's Walmart
This comes months after this report
>Walmart: Wage hikes are killing our profits
They increased wages to $9/hour just this year and outlook is down until 2017. Wages are supposed to go up to $10/hour in February
Hell at 26, you still have lots of time. I'm too old and my best years were shit on by this economy. You're coming of age right on time for the correction. Whereas I couldn't find a job, homes were too expensive, women were feminist bitches, you're coming of age where you will own the world. All of this shit is being corrected in the next few years and you will be better for it. Just keep your head up high. Work for free as an intern (i know it sucks), pay your dues, you will be ok. Work harder than your peers, there's always someone willing to do what you wont do. Keep pushing and pushing, to do nothing leaves you open to the fate of your environment. You choose your fate. Don't get too comfy right now, I know times are hard.
That is because this is the real crash,
a currency crisis that is literally going to destroy the dollar
this one will definitely be worse than the great depression after they kicked the can down the road
Implying China is the only problem
Europe is gonna get fucked too for several reasons.
The resurrection of border controls alone will wreck profit margins for a lot of countries and that's just one of the many financial and political risk factors at play over there
This whole analysis is based on China's drop causing the US drop, which you believe because that's what they say on cable TV.
The US economy is fundamentally weak - it would have sold off eventually anyway.
Directly, nothing. China was the trigger for the initial down leg when on Jan4th the central government relaxed selling restrictions there and Shanghai dropped like a rock. US investors, who understand that many stocks are exposed heavily to China took the signal that Chinese confidence was going to crash, and they started selling US stocks indiscriminately.
Where it gets out of control is with margin debt. Think of it as a measure of weakness, or fragility. A heavy ceramic coffee cup (low margin) can survive a fall from table height. A thin wine glass (high margin) will break if you tip it over /on/ the table.
>This is already fucking over the Canadian dollar isn't it?
I have no idea, but when the fed starts to print out pepes to save the economy,
the value of rare pepes is going to get crushed
Those single days rebound though
Since December 16th, it's fallen nearly 2,000 points, about 10%
Iran is going to flood markets with their oil any day now, China isn't reporting any news, so who knows what is with them; US retail spending fell to 0.1%, oil keeps falling, oil companies keep closing, etc
Tens of thousands of super computers making instantaneous trades.
No more human element, just super computers making massive trades in 1/100th of a second.
It is all over, it is all over...
This is the outcome of super computers making massive trades in fractions of fractions of seconds.
WTF did you think was going to happen, the element of human traders competing with super computers packed with millions of trading algorithms would last?
This is the final chess move. The average Joe on his day trader cell phone software has just been put into check mate.
Sell all you can right now. Get out right now. buy guns, ammo and try and survive after the super computers have crashed the entire shit show.
Yes that's accurate. China is overvalued and had a lot of value based of growth. But they're not growing as projected, likely fudged their records a bit, and are slowing manufacturing.
If desired, all China had to do was cause instability in the market place greater than the US government could control. In China, a great part of there markets are under direct government control. China has propped up their markets just as the Fed has propped up our banks etc. When China started changing it's market control rules, it might be the straw that broke both camels backs.
>> just my 2 cents.
How many of you lived through the 2008 Crash and Great Recession?
I really dunno how I'd handle that again. I had plans to join a job training program later in the year. I dunno. But I learned a lot from those years. I'm a lot more frugal. But if it's worse than 2008, I just dunno.
Nah. It ain't happening until the Fat Man sings.
I have no stocks and am 100% liquid
what do I care?
Then you're a smart man. I have feeling this year might bring the "black spring" or summer, depending how much they can delay the inevitable. Oil will hit $10 within the month, it will all come tumbling down.
A visiting tourist drives through a really small town, stops at a small motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.
As soon as he walks upstairs, the motel owner grabs the $100 bill and runs next door and gives the $100 to the butcher to pay his debt.
Now that the butcher has been paid he takes the $100 and runs down the street to pay the $100 to the rancher who supplies his meat.
The rancher takes the $100 and heads off to pay his head cowhand who he owes $100 to.
The cowhand owes his sister money and so takes the $100 and runs to pay his debt to his sister who is staying at the motel.
His sister takes the money and rushes to the motel and pays the motel owner who she owned $100 to.
The motel owner then places the $100 back on the counter so the tourist will not suspect anything.
At that moment the tourist comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves.
The motel owner got $100 from the sister, the butcher got $100 from the motel owner, the rancher got $100 from the butcher, the cowhand got $100 from the rancher, and the sister of the cowhand got $100 from the cowhand. $500 was collected and paid out and everyone was paid and is happy.
No one produced anything. No one earned anything. However, the whole town is now out of debt and looks to the future with a lot more optimism.
This debt is different, the money isn't real, it cannot be solved.
I was not attempting a global macro analysis, just an explanation for the down leg that started on Jan 4th, and will continue, at a minimum, until margin debt in the US returns to 100%, or less.
Yes, Yerp is fucked in more ways than the rape caves. But US equities can take a lot of bad news under the right internal conditions. These aint them, so bad news will be bad for a while.
Could be 1650-1500. Could go to 748.
Not the anon you were talking to, but thanks for the pep talk senpai.
It's easy to get discouraged and say "fuck it", and it feels as though the world is against us, but the value of hardwork and a positive attitude can't be more valuable in a generation that honestly feels lost.
At this point it's going to be economical to grow a lot of that produce in greenhouses.
It will reduce the price and keep capital in Canada.
A low dollar isn't always a bad thing when it comes to employment and rhe velocity of money.
We've been telling the Scots this for years but they won't fucking listen..
Oil is easy and fast cash which is all people are concerned about, a quick buck. No foresight, no planning, no contingency when things go tits up.
They can afford to suffer though, it's why they're doing this, they have so much fucking oil they could saturate the markets for a couple of years and still have enough cash to pay male prostitutes millions of Riyals.
Good story there and an important lesson taken from it.
Your explanation of the current U.S. equities downleg is correct.
Yes, the smart money got into cash a while ago and is now sitting, patiently waiting to see how this shakes out and what firms and sectors come through this undervalued. At the moment I would say get into defense. There are wars coming.
On January 22nd restrictions on selling by certain large institutions and mutual funds will be lifted in China. We'll see some shit
It's unclear. They still have a billion people and manufacture more than anyone else, but now is an opportunity for others to outpace them.
Maybe if the US elects Trump and gets out shit together...
If you don't shut these guys down, the stuffing in that mattress might be worth a whole lot less, pal.
Based trips say not at all. USD has the best bull case out there at the moment.
It's corrupt as hell, yes. Too many un-informed retail investors with too much margin being targeted by these guys >>61088783 who can front run them all the way down.
>just my two cents tho
But that makes sense tho. Its no secret that the US and China have been in a trade war for the past decade.
Why would the fed raise interest now tho? Isn't it like the perfect storm?
Should I hold UXVY, double down, or reinvest in a different, more liquid, volatility security?
So what do I spend my extra cash on?
Gold? Silver? Bullets? Food?
What are the chances of extreme inflation here ?
I would never post a pic on 4chan of anything related to the actual me.
I have professional-level access to the ES, the CL, and the USD/YEN cross, and the Shanghai. They tell me pretty much everything I need to know, with occasional glances at the cum tick.
I only trade the ES and only intraday. My (slow-speed, human-commit) algo has six moving parts. I will never get rich, I just make a living.
>tfw I knew I should buy VIX but too poor to buy stocks
TRUMP ELECTED PRESIDENT
JEWS MOVING TO AUSTRALIA DOING BUSINESS WITH CHINA
TRUMP-PUTIN PACT SIGNED
RUSH LIMBBAG SAYS TRUMP WEAK ON CHINA
SOUTH CHINA SEA SURPRISE ATTACK BY TRUMP
Who cars about the stock market, Obama is being interviewed by Youtube stars!?!
What a joke. The last time he did it last year. That video barely broke 1 million views and that's after all the advertising it got. Other stupid shit on her channel has more views.
#Venezuela's President #Maduro declares 60-day state of economic emergency
The first domino to fall because of the low oil price.
It's beautiful if you take a step back and see how it all weaves together, it really is like chess.
Next is Russia, Saudi Arabia, Iran.. etc.. all the oil dependant states are going to have two choices, fall to revolutions or anarchy, or fight.
This is a long term plan put into motion years ago when the US decided to take full control. A desperate attempt to retain power. The west will not be allowed to fall, the east will not be allowed to rise, there will be war. And everyone is going to think in the future that the west were attacked first, that we were the good guys. Amazing. Watching an event in history like this unfold, really amazing to watch.
I'm terrified about what the future holds, maybe because i already see what it is. I wish i didn't.
Bullets because what happens when the money fo dem programs begins to dry or isn't worth shit?
They should have known it was all over when this happened. Only the suckers are in it now. John Henry has been defeated by the machine.
This is true, i don't, but something needs to change. We will pay in blood for this plan, we won't reap the benefits either, it'll just go on as usual afterwards, a little less hope for change each time.
The bigger they are, they harder they will fall. remember that.
Not looking good for an oil based currency.
>tfw got my first gun yesterday and loaded up on ammo.
But the dollar is getting stronger and yen is more exposed to China
The yen is gonna keep falling so they can try to get more share of the export markets, while the dollar is gonna keep going up as the Fed raises rates
America will always be good, economically speaking. May not be #1, but we'll be in the top ten.
The European countries, especially the smaller ones, are the ones who should be scared. They can turn South American tier very rapidly. Then society will break down and you'll have rich Asians and Arabs buying beautiful white girls for cheap.
How embarrassing would it be for European people to immigrate to non-white countries for job opportunities en mass?
Bundy's on the case
Snow's value is increasing exponentially
These up legs are shorts covering. You can see it in the breadth.
>you'll have rich Asians and Arabs buying beautiful white girls for cheap.
Their money won't be worth anything either though
Germany will be fucked, especially with all their invaders
>mfw a single fucking dollar is worth 18.30 pesos
>1 year ago a dollar was worth 13 pesos
JUST FUCK MY SHIT UP
They'll attack Iran before they do. But i wouldn't be surprised either if there was a coup before that. There has been some unrest, and if anyone opens their eyes they'll see that KSA lowering oil prices on purpose is suicidal. The deficit they have already is fucking bananas.
CRAWLING THROUGH MY WAAAALL
THESE MEEEXICAAAND ARENT LEAVING!
If you are under 40, get ready to buy more. This can only go so long before central banks intervene. China will likely go first this time. They will devalue the yuan on a shock-overnight basis, then a massive short squeeze will bring things back into a range trade that will see volatility decrease gradually, then suddenly over a few weeks time.
Depending on events, March and April should see another melt-up, wall-of-worry rally back to something like S&P500 = 2050.
Don't sell anything in the red right now. You are an investor, not a trader. If all these preppers tales about the end of currency in general happen, no one is going to care about stocks anyway.
Buy the China devaluation and hope none of the major governments have to shoot protesters in the public square.
Finland went through a mega drop in the early 90s
Pic related is what happened to the workforce back then.
If this drops like it did over here, then it's going to get pretty god damn interesting.
Good thing is that if you play your cards right, then you can purchase expensive things for pocket money, when the rich ones start flash selling everything.
Some guy I worked with bought a big lakefront property for 4000 Finnish Marks.
Now worth about half a million.
There's hope in this chaos. The market crashing is a good thing. Prolonging this will just continue to make your generation lose themselves. You're lost because your comradery is mostly fake and digital. When the power goes out, you will become aware again. Your values will be realized and you will be surprised how valuable you all really are to yourselves and to each other. You will find yourselves and will never feel lost again. Everything is cooking up to get interesting, I have hope for you all. And I'm not one to be that way.
Tough decision. You have life savings in strong, established companies. I assume you want to leave it there until you're old?
Fact is that equities are taking a hard downward correction globally. Political risk is high and it could get worse than that.
Now, you can liquidate your holdings and move to assets that will do well in the downturn but that means you have to take a more active role in managing your savings, instead of just letting them sit.
For example, you can move to defense stocks, Swiss francs, U.S. & Swiss government bonds and VIX.
But then when you think you see an opportunity you can move back into other assets, hopefully when they're cheaper and you'll make money and grow your savings.
You'll need to be more active and the risks are great. If you're willing to accept the risk, you should liquidate now and try to take advantage of these market moves
is this fucker going to collapse or not
you guys always say we're on the brink of collapse and nothing ever fucking happens
stop teasing my dick over nothing
Late millennials, Xers, and Boomers are going to feel the pain more than the Zs. Zs will likely be doomed if the aforementioned generations can't unite despite their differences to fix this shit.
saying that if you don't have nothing to gain you have nothing to use.
i think he's full of it because i'm in russell 2000 pretty deep and i'm getting fucked. shouldn't be affected by china shit but it is
It is an emergency propup. The gamble is that pumping will keep it floating high enough to prevent a massive sell off crash. That people will think it is at the bottom and now it is time to buy.
There is just no one left to fucking buy.
The rock is bled dry. There is nothing left.
Meanwhile there is a massive birdflu outbreak taking place in Indiana. Invest in chemgear, MOPP 4...MOPP 4.
What is going to happen now? Will the market continue to fall or will measures be implemented to stop the happening?
>only the NEETs can know peace from this evil
this shit NEVER happens in a january. sure a decent drop but this is going to bottom with no brakes in site. i wouldn't do something like go into margin. wait until it settles for a month
But hasn't the Fed already shot its wad?
If they cut rates back down again it seems like maybe there would be a brief rally but I think it would have worse effects in the long term
Janet has a choice:
(1) initiate QE again (probably with negative interest waits).
This would essentially 'kick the can' until the dollar loses all value, and the end result is a total, almost apocalyptic scenario where people cease to use dollars and instead shift to hard currency (like gold and silver)
(2) Janet does nothing, allows the economy to collapse.
This would 'get it over sooner', the blame would fall on her shoulders (even though it is not entirely her fault), but the dollar would be saved in the long run and there would not be an absolute collapse in government.
She will probably choose option 1.
That's how the big guys get rich - on the backs of lots of broke little guys.
Look at it this way. The NYSE was founded in 1789 in the middle of an existential shooting war in a country that did not exist yet. It traded through the civil war (US), WWI, WWII, the great Spanish Flu pandemic, and the cold war, including the Cuban missile crisis, and it never hit zero. Even the gold standard and FDR's confiscation. Never hit zero.
If your window is ten years of more, stick with it. Don't sell. Look to buy more. Doomsday scenarios cancel all investments for everyone anyway. But they never happen.
I don't get it.
Just earlier this week, Obama addressed the nation and said the economy is very strong. He also said that ISIS is not a serious threat.
Since he made those statements, we've had attacks in Jakarta and the economy started to crash. Obama wouldn't lie to us... right?
Exactly. Call me when it drops 25% then I might start to worry a little bit. Until then, everything is fine. This is fine. Oil is fine. The market is fine.
loli loli pop that body
Why is that? I mean I didn't buy it! It was bought by my mother for me after my father died when I was 5. I am 20 years old and in my freshman year in college. How the fuck should I know where to invest and what to even do with that money?
>tfw I wish I knew economics
does anyone have a youtube playlist or something for economic illiterates like me?
The most popular stock right now?
Marathon Oil. Down to under $8.
My GF and her mom work for them, shit's gonna seriously be fucked once Iran gets back into the market.
It feels like the 1970's in reverse. Instead of OPEC embargoing us, we're being drowned in black fool's gold.
Each action has an equal but opposite lawsuit
Jews cannot be created or destroyed, only mitigated.
Force is the number of Jews over time; the more Jews, the more force one must suffer.
A Jew will keep jewing at a constant rate unless acted upon by other Jews (which causes exponential jewing) or by non-jews who may stop the Jew, depending on their political polarity.
Stocks are the casino part
If you look at commodities or indices like VIX (ABX in 2000s) you can often times protect yourself since something is gonna look sketchy
I'm majoring in it, best I could tell you is buy some textbooks if you genuinely want to learn instead of getting pop econ
The FED has taken its position. That's why it must be China this time. China can't afford the unwashed showing up on Tienanmen Square again. They could lose basic control. They will be compelled to devalue, or intervene directly.
The FED can sit tight through that, and maybe even raise again, as they are signalling. Strong dollar fits their narrative right now. Like you need air, fuel and heat to make fire, you need consumption, wages, and price to make inflation. The FED has jobs flat and price flat, but they can make (domestic, US) consumption if they have to by making dollars stronger.
Last I heared, ammo goes bad eventually. Don't bother yet. China still has room in their vaults for more green paper if that's what it takes to keep the dollar propped up.
In other words, the apocalypse isn't near. You'll get actual signs from real life around you before that happens. So long as it's "just" the market, society will be fine.
It is not even 2 Oclock yet and it is yet again falling fast back to -500
Where does it fucking end?
Why don't the investors buy the stocks and give more money to the market super computers to gobble up and exploit? We need more sacrificial cows for the funeral pyre! The market is rebounding goy! Buy something. Buy anything! Everything is red! Pick a red square and pour your money into it goyim! Stop selling and please buy something!
Two 10% corrections in 6 months happened in; 1929, 2000, 2008 & now 2015/16.
Since its hit 10% again we're just waiting to see if anything snaps and it goes further down.
There's a lot to keep an eye on though; Oil, China, FED etc
All you need to know is very simple. Save more than you spend, and when you have a reasonable amount of money saved up (like 6 months of emergency cash) think about investing.
What to invest? Pick low expense ETFs from a company like Vanguard. And then, no matter what happens, don't sell. The stock market is prone to wild swings like this, but you must always keep in mind that stocks represent shares of real, physical companies (usually anyway). The price itself is based on speculation from others on how well the company is going to do, the fact that the price goes up or down doesn't necessarily mean the company is doing better or worse, it just means people think it is.
But we all know that the economy is always on an upward growth trend. Only places like Japan are stagnate, and even then wealth is still continuously generated. Stocks will pay out dividends if the company is big enough, which is like free money just for owning shares.
In a long enough term you will make money, you just can't sell when it goes down. If you are going to buy a share of anything, anticipate you'll be owning it for the next 20 years.
Shit man, now I'm feeling sorry for you. Just read this book, it helped me out a lot when I got started.
In general, you shouldn't be too worried since you're still young and have time to correct your investing mistakes.
Protip: ditch your individual company stocks and look into getting an ETF that tracks the total market, then allocate your funds so that you have 80/20 stocks to bonds.
i genuinely want to learn but I have way too much other shit to do, so i don't have time to read an econ textbook desu m80
I need pop econ
like what the hell does the the FED highering or lowering interest rates mean?
whats your major tell you about how the baltic dry index is at all time lows and no ships are moving across the ocean? whats your major tell you about the .03 cents of gdp growth we get for every dollar that is printed? does it tell you that soon it will be negative?
your major means nothing when your curriculum was devised by kikes.
China also has massive internal debt so they need to devalue for that reason too
I still don't understand how devaluing the yuan helps global equity markets though to be honest, famigliaronieroodypoo
By making open market bank bond purchases or sales they can increase or decrease the money supply, respectively lowering or raising interest rates
Alternatively they can change reserve requirements so that banks are able to more freely lend money
>You'll get actual signs from real life around you before that happens. So long as it's "just" the market, society will be fine.
Correct me if I'm wrong, but aren't markets based around real life
The federal reserve controls the interest rate by which is lends money to banks. What this means is it determines how much other banks can afford to lend to regular idiots/investors.
Interest rates are a reflection of risk, credit cards are generally very risky for a lender because there is no security backed against what they lend. That's how they justify high interest rates like 10-20%. A car or a house is much safer, because the bank can take the car or house back from you if you don't pay. Thus, lower interest rates.
A lending institution is going to set interest rates based on what THEY can borrow from the federal reserve. If the interest rates are too high, generally economic activity like borrowing slows down because the cost is too high. Low interest rates encourage more borrowing. But if they stay too low for too long inflation gets too high which is also bad. Or people drown themselves in debts because they're retarded.
youre retarded. expect massive layoffs no matter what the fed decides to do. inflate the economy with QE4 and destroy and illusion of a recovery. expect riots. let it collapse now, expect riots.
you germans are definitely fucked, at least we have guns in america.
The recent finance part is all the kike shit, economics is a field that has existed for centuries
I'm not saying I'm any smarter than any of you because of my major, just saying that as someone who knows a fair bit textbooks are a good place to start
Try to find this cheap somewhere, I used it for my monetary policy class
not is properly stored.
>fun fact. chocolate has a shelfl life of almost years.
Its debatable at this point.
US imports and exports down at the same time. Just getting shipping back out on the water will take until 2017-2018 even if the dragon comes roaring back (which it won't). Time to settle in for a long term decline, new "new normal." World trade slowdown in real goods is off. You can't ship cars by air (and you wouldn't download them).
Don't forget that autonomous cars are just around the corner. VW is going the way of the dodo because of their jewish tricks with emissions. It's an open field now for U.S. automakers.
I'm scoping out what to buy as far as oil, Valero or Marathon seem like good picks but I want to see what happens with Iran being unsanctioned and entering back into oil. $20 or bust.
This changes the narrative of debt-fueled share price growth and forced margin selling how?
Your chart, a trader's chart, shows that margin debt mean-reversion draws stock prices down 10% for every fifty percentage points. From the current margin debt level, reverting to the mean would draw the S&P to 748.
>Correct me if I'm wrong, but aren't markets based around real life
Vaguely. They're indicators of expectations of a part of real life. In other words, terrible proxies.
In real life, you also have to factor in all the things not traded at stock markets, the "delay" from the markets to real life, and all the interventions inbetween. Society needs time to decay, there's a lot of piled up stuff we can get rid of to save the basics first. So long as the common person can afford food, a place to live, a method of transportation and some entertainment, there's no trouble nearby. Once you see the entertainment falling out - that's when it's time to buy ammo. We're not even close to that. We're still at the point where the entertainment has to be branded with fruit logos or it's not good enough.
Exchange Traded Fund. It's an Index, which means it's not specifically a company, like Google or Apple. Instead, it's like what the DOW or the S&P are, a list of whatever companies organized by some metric.
So instead of buying a single Copper mining company, which might go bankrupt or soar, you buy a little bit of -all- the Copper companies in a copper mining ETF. You reduce the risks of any single company imploding, but lose out on the huge gains when they strike a big vein. It's a way of reducing risk and having a more stable investment portfolio.
When people talk about how important diversity is, ETFs are the lazy way of having it.