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I'M SOOOOOOO CONFUSED!!!!!!!!!! :confused:

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  • I'M SOOOOOOO CONFUSED!!!!!!!!!! :confused:

    Can somebody please explain the stock market to me and tell me just what the hell is going on in the world?

    (well, that smiley face icon didn't work)

  • #2
    Rich people invest money in virtual stuff that doesn't really exist.

    Value of virtual stuff goes up or down.

    Rich people make even more money or fire some people if they lose any and make even more money.

    Dr. S.
    Imagine a ball of iron, the size of the sun. And once a year a tiny sparrow brushes its surface with the tip of its wing. And when that ball of iron, the size of the sun, is worn away to nothing, your punishment will barely have begun.

    www.sinisterincorporated.co.uk

    www.tabletown.co.uk

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    • #3


      Please stop abusing this button.



      30 seconds on google and you get this link:
      http://en.wikipedia.org/wiki/Stock_market
      Winnie says
      ---------------------------------
      "He fell out of a Gestapo car, over a bridge, and onto a railway line. Then was run over by the Berlin Express.

      It was an Accident."
      Herr Flick.

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      • #4
        Originally posted by Duke William View Post
        Can somebody please explain the stock market to me and tell me just what the hell is going on in the world?

        (well, that smiley face icon didn't work)
        The stock market is an indicator of investor expectations. That is all. If you are not an investor then don't worry about it.

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        • #5
          Originally posted by Doctor Sinister View Post
          Rich people invest money in virtual stuff that doesn't really exist.

          Value of virtual stuff goes up or down.

          Rich people make even more money or fire some people if they lose any and make even more money.

          Dr. S.

          Lol. I know is not funny, because is the truth about this world we live in and the poor people like us that suffers. I'm not a gambler when it comes to 401k, I go low at least if I lost not too much.
          Last edited by MKTL-624; 31 Aug 07, 14:12.
          My Own Christmas Tree....

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          • #6
            Originally posted by Duke William View Post
            Can somebody please explain the stock market to me and tell me just what the hell is going on in the world?

            (well, that smiley face icon didn't work)
            The original idea was that it was envisioned as a means to raise Capital to finance a business.

            Let's say you have a great idea for a new "widget". You are convinced your widget will out sell anyother on the market, if you could only get it built. You go to 10 of your friends and they agree to loan you the money ($10 each) to build your widget, in return for 5 % of each years profits. You and they sign a contract to that effect, that contract is basically a piece of stock. It's original value is the amount of money he has agreed to lend you.

            Congratulations! At the end of the year, the widgets have been wildly successful. Your friends $10 investment has returned them $1000 as their 5% of the profits.

            A lot of people would now like to buy that contract from them. They are willing to pay more than the original $10 for it, so we say the price of the contract (stock) has gone up. They are gambling that your company will continue to be successful and that the 5% profit will continue to be huge. If it does, the value of your stock will continue to rise, if it doesn't the value of your stock will fall as demand for it lessens.

            Of course, in this scenerio, you still own 50% of the stock and as the value of the stock being traded goes up, your "wealth" grows accordingly.

            As far as today's major "economic woes", they are more closely tied to the availability and use of domestic and foriegn credit. It appears to be a balloon that just keeps growing, and we're all hoping it doesn't burst until after we're dead. Sorry Kids.
            My Avatar: Ivan W. Henderson Gunner/navigator B-25-26. 117 combat missions. Both Theaters. 11 confirmed kills. DSC.

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            • #7
              Originally posted by Listy View Post


              Please stop abusing this button.
              Hear hear.

              Comment


              • #8
                If you are not planning on retiring in 5-10 years...in other words you have a long-term investing horizon say 10-20 years ideally...you must have a certain percentage of your long-term savings invested in the stock market.

                Each month or quarter you should invest the same amount and keep doing it regardless of short term insanity in the market. Over the long run the Stock Market has gone up...a lot.

                I recall in 1988 when the Dow "Crashed" from around 2500 to 1750. People acted like the world was ending. Well here we are 20 years later with the Dow at 13,400. That is a 665% increase in 19 years...an avg annual rate of increase of 30% or so. Lot's of scary ups and downs along the way but the long term trend is always up. When it stops going up in the long term we'll have plenty bigger problems because it will mean the West as we know it is toast.

                If you invested $10,000 in Warren Buffett's Berkshire Hathaway when he started it 30 + years ago it would be worth $25 million today.

                Right now the market is worried about the impact that mortgage defaults from poor quality mortgages will have on the economy.

                Tell me...in 10 years will anyone even remember that we had a mortgage crisis in 2007...ha...ignore it.

                Bottom line...if your time horizon is long term...10+ years...invest regualrly...and ignore the short term movements.

                Legal Disclaimer: This is my opinion and not investment advice!
                Publisher
                Armchair General Magazine
                Weider History Group

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                • #9
                  The stock market is not some smoke and mirrors designed to fleece someone at the expense of others. For every seller there is a buyer. The seller is betting the stock will go down and the buyer is betting the stock will go up (Kind of a simplistic explanation as there are many resons to own stock). One of them is wrong.

                  Stock is no different than any other commodity. Its value is determined by what the public thinks it is worth. There is no such thing as a fixed value to any commodity, including gold. The prices of all commodities go up and down based on what the buying public thinks it is worth.

                  Stock is simply ownership in a company. A company has value, if you own stock in that company you own some of its value. If you own enough stock you can even influence how the company is run. The value of a company changes over time, so the value of the stock changes too.

                  The stock market is not an indicator of the strength of the economy. It is an indicator of investor expectations. There is no direct link to the economy. Prices of goods and services change everyday. The financial markets just happen to be the most efficient and liquid where changes happen faster than for other things.

                  You need to relax. The world is not coming to an end. Nothing here is new under the sun.

                  I have an economist on staff
                  Last edited by Miss Saigon; 31 Aug 07, 17:27.

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                  • #10
                    Originally posted by Eric Weider View Post
                    If you are not planning on retiring in 5-10 years...in other words you have a long-term investing horizon say 10-20 years ideally...you must have a certain percentage of your long-term savings invested in the stock market.

                    Each month or quarter you should invest the same amount and keep doing it regardless of short term insanity in the market. Over the long run the Stock Market has gone up...a lot.

                    I recall in 1988 when the Dow "Crashed" from around 2500 to 1750. People acted like the world was ending. Well here we are 20 years later with the Dow at 13,400. That is a 665% increase in 19 years...an avg annual rate of increase of 30% or so. Lot's of scary ups and downs along the way but the long term trend is always up. When it stops going up in the long term we'll have plenty bigger problems because it will mean the West as we know it is toast.

                    If you invested $10,000 in Warren Buffett's Berkshire Hathaway when he started it 30 + years ago it would be worth $25 million today.

                    Right now the market is worried about the impact that mortgage defaults from poor quality mortgages will have on the economy.

                    Tell me...in 10 years will anyone even remember that we had a mortgage crisis in 2007...ha...ignore it.

                    Bottom line...if your time horizon is long term...10+ years...invest regualrly...and ignore the short term movements.

                    Legal Disclaimer: This is my opinion and not investment advice!

                    Yep, most say - the younger you are, the higher the percentage of your investments/savings should be in the stock market. Take the risk while you can afford it. As you get older and start getting closer to retirement, you should slowly decrease investment in stock markets and go to more stable things. Or so I'm told.
                    “To discriminate against a thoroughly upright citizen because he belongs to some particular church, or because, like Abraham Lincoln, he has not avowed his allegiance to any church, is an outrage against that liberty of conscience which is one of the foundations of American life.”

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                    • #11
                      Originally posted by holly6 View Post
                      The original idea was that it was envisioned as a means to raise Capital to finance a business.

                      Let's say you have a great idea for a new "widget". You are convinced your widget will out sell anyother on the market, if you could only get it built. You go to 10 of your friends and they agree to loan you the money ($10 each) to build your widget, in return for 5 % of each years profits. You and they sign a contract to that effect, that contract is basically a piece of stock. It's original value is the amount of money he has agreed to lend you.

                      Congratulations! At the end of the year, the widgets have been wildly successful. Your friends $10 investment has returned them $1000 as their 5% of the profits.

                      A lot of people would now like to buy that contract from them. They are willing to pay more than the original $10 for it, so we say the price of the contract (stock) has gone up. They are gambling that your company will continue to be successful and that the 5% profit will continue to be huge. If it does, the value of your stock will continue to rise, if it doesn't the value of your stock will fall as demand for it lessens.

                      Of course, in this scenerio, you still own 50% of the stock and as the value of the stock being traded goes up, your "wealth" grows accordingly.

                      As far as today's major "economic woes", they are more closely tied to the availability and use of domestic and foriegn credit. It appears to be a balloon that just keeps growing, and we're all hoping it doesn't burst until after we're dead. Sorry Kids.
                      Okkkkk, I guess that makes sense.

                      But I'm Curious......What's a Widget?????

                      Comment


                      • #12
                        Originally posted by Eric Weider View Post
                        If you invested $10,000 in Warren Buffett's Berkshire Hathaway when he started it 30 + years ago it would be worth $25 million today.
                        Legal Disclaimer: This is my opinion and not investment advice!
                        Is it legal to give Neg. Rep. to the Boss?

                        Where were you 45 years ago when I could have dropped $20 on Texas Instruments and that silly hand held, 4 function calculator? Or even closer to home for me, when ole Bill Gates and Paul Allen had that little shop in the garage?

                        My Avatar: Ivan W. Henderson Gunner/navigator B-25-26. 117 combat missions. Both Theaters. 11 confirmed kills. DSC.

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                        • #13
                          Originally posted by Listy View Post


                          Please stop abusing this button.

                          30 seconds on google and you get this link:
                          http://en.wikipedia.org/wiki/Stock_market
                          Listy, I already know that you believe I have the brain of a Cheeseplant, but even I know WHAT a Stockmarket is.

                          I did not want a text book definition, I wanted to know what was going on at the present because it is confusing to me.

                          But thanks for trying anyway.

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                          • #14
                            Originally posted by Duke William View Post
                            Can somebody please explain the stock market to me and tell me just what the hell is going on in the world?

                            (well, that smiley face icon didn't work)
                            This is a MUCH better explanation.

                            The stock market is how rich people play chicken.

                            Current events are just a reflection of what the rich people are attempting to play chicken with.
                            Life is change. Built models for decades.
                            Not sure anyone here actually knows the real me.
                            I didn't for a long time either.

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                            • #15
                              Originally posted by Duke William View Post
                              Listy, I already know that you believe I have the brain of a Cheeseplant, but even I know WHAT a Stockmarket is.

                              I did not want a text book definition, I wanted to know what was going on at the present because it is confusing to me.

                              But thanks for trying anyway.
                              Then I must also apologize. I didn't read your post in that manner. Sorry I gave you my 9th Grade definition. Mea Culpa
                              My Avatar: Ivan W. Henderson Gunner/navigator B-25-26. 117 combat missions. Both Theaters. 11 confirmed kills. DSC.

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