Is this what needs to happen or is happening?
Kanzz last edited by Kanzz
Was thinking about FI and my port etc etc
A thought that came to my mind was this, what we are seeing right now is difficult to describe however it would be safe to say money is leaving the index, and or atleast moving about alot more than we are all used to for one reason or another.
Anyway all these people selling shares at silly low prices, people have to be buying these shares up, so my thought/question is this I guess.
Once all the "soft money" leaves the holds and its only the hardcore people holding these shares who refuse to sell. They will then be the ones who have some sort of power as if nobody is willing to sell their shares, people will have to buy from FI if they want them?
With this new system that could cause massive growth very quickly as prices could start jumping back to what they where if demand is high enough and nobody is selling the shares and FI need to keep minting new ones?
Thats a very simplistic way of what im trying to ask I guess.
Valhalla last edited by
@Kanzz you could look and it like that. Hate to quote warren Buffet again, but it’s a bit like his favourite quote “the Stockmarket is the device used to transfer wealth from the impatient to the patient”
So as the more impatient traders sell, the patient traders buy up cheap. This is what has turned some traders into FI whales- they bought heavily in previous FI market downturns. And there has been many downturns since 2015. When the market picks back up, and ppl come back out into the sunshine, some traders are now holding massive portfolios. And ppl chastise themselves for selling so cheaply.
Once a lot of the wealth has transitioned to more seasoned traders (who have no intent on panicking or selling) the market should naturally rise. Or at least it will be one of the factors that will help it rise. A re-allocation of wealth if you like. I feel bad because a lot of ppl will have lost money selling cheap. Despite all the advise on the forum saying this has happened before and will happen again- don’t sell. But ppl still panic 😕
Any downturns not nice as peoples natural reaction is to panic.
However, I've been here before and seen the panic. Theres too many people involved with the Index now for it to fail.
There are people involved with £100ks in their ports, you don't think they'll be saying to their mates come on nows the time to get on.
As soon as the big sharks start dropping £££s everywhere the sheep will follow and confidence restored.