/biz/ - Business & Finance

Memes aside, where is all the money coming from?

Is it just super rich elite people digging into their savings to pump their own stuff?

>>57553020
Speculation.

Higher stock prices mean they have more leverage to borrow money to buy more stocks ad infinitum

Welcome to the Hellscape.

The market is going up specifically because permabulls think they're going to cut rates.

>>57553020
well there's no money in stocks, so it doesn't need money to come from anywhere. Its about supply and demand for stocks against cash. Stocks are more scarce, dollars aren't because the government runs a multi-trillion/year deficit and just prints money/debt out of nothing. So people want to own stocks.

>>57553007
This is going to come crashing down soon. I just wish I knew when so I could profit.

>>57553075
>>57553069
>>57553081
Oh … Is that why markets dump when rates actually get cut?

Basically the speculators buy during rate hikes, and then intensify buying when the news of cuts coming soon is happening… and when the rate cut comes, they actually sell off for profits, which causes the market to dump because profit taking is happening

I just noticed markers usually dump when rate cuts first start, and then pump after

>>57553020
Fed is pumping FAGMAN. all other stonks are going sideways

>>57553081
>well there's no money in stocks
thats factually wrong
dividends are the most basic way redistributing earnings to shareholders

>>57553020
With low unemployment and high wages I think it is the 401k money. I myself started a new job in December and I'm adding to the s&p500.

>>57553139
yes there is money in the companies... thank you captain obvious. I'm just saying in a stock trade money goes from the buyer to the seller, so there doesn't need to be any money used up or something, just supply/demand changes for stocks over cash can increase prices.

>>57553173
>I'm just saying in a stock trade money goes from the buyer to the seller
that's also factually wrong as market maker is a thing that exists and fees are transparent for retail traders only since robinhood became a thing.

>>57553199
market makers are buyers and sellers, retard

>>57553242
market makers are liquidity providers on both fronts
and saying transactions costs are not a thing is retarded in an of itself
do you think large block trades are arranged for free or something?

>>57553242
also regarding market makers they make some of their money on money you lose on the spreads, which is transparent to a regular user but can not be ignored

>>57553268
>>57553304
I'm not talking about any of that, retard. All I'm saying is for stocks to go up, you don't need money to be created or come from anywhere like the other anon was asking. I never said anything about market maker fees or spread or w/e random shit you're sperging out about because you just learned about what a market maker is recently. No one was talking about them.

>>57553081
>demand doesnt require money bro, just buyers and sellers bro

>>57553406
Yes, it doesn't require more money for stocks to go up.
Does a stock going down (shares/dollar going up) require more shares to be created? No.

More money of course helps, but its because it improves the demand/supply of stocks vs cash. Right now money supply is stable, but if demand for stocks increase, prices still increase without using up money or depleting anyone's savings. The market can just value shares more than inflationary cash.

>>57553553
>Yes, it doesn't require more money for stocks to go up.
doesnt require money from who? the underlying company? we're talking about
>Memes aside, where is all the money coming from?
which is the dynamics of supply and demand in the marketplace, i.e the actual act of spending cash / debt to buy equity
what money is not needed exactly, are S&P 500 ETFs shares sold for free where you live?
>>57553553
>Does a stock going down (shares/dollar going up) require more shares to be created? No.
thats such a weird argument, what do you mean by require? companies issue equity when they need funding and think they can raise capital by selling part of their business to the public, a particular stock going down can cause the underlying company to do all sorts of things as the fact that the stock is going down can mean that the business is not doing so well and they might be in need of additional capital so they might try to raise capital by issuing convertible debt can dilute the common

>>57553645
Thank you for explaining the basics of stocks, midwit. Now wtf does any of that have to do with what I said? If one person buys a stock for $100 and then sells it for $200. How much money needed to be created?

>>57553778
to make that transaction happen? $200

>>57553859
Really lol? So who got the new $200 that didn't exist before?

>>57553859
Based retard.

>>57553137
FAGMAN is dead. It's just MAGA now.

>>57553913
is money created from thin air? you need $200 to buy that share, which is what I said.

>>57554025
The buyer did, the seller got the $200 so net money and net cash savings is the same. It wasn't used up. No money was used up or created. No savings were depleted in aggregate. That's my point.

>>57554052
depends on the source of the money for the buyer
you're assuming every transaction is real money going around and not funny money leverage

>>57553007
this market is kinda full of speculation. Im tired of both crypto, forex and stock market. they are all just a ponzi game, played by the elite after all. well, i dont even fucking care about fed cut or raise the rate. i will just gonna fuck myself and playing blocklords all alone

>>57554405
That's the definition of non-tangible market: speculation

>>57554450
tangible market too, retard, look at the real estate business

>>57554405
thanks for playing lmao

>>57554405
But the stock market isn't a ponzi scheme, it's our way to fuck over the elites just look at GameStop

>>57554450
it's so over

>>57553069
Literally the bulltrap, it's a pump that technically can't never end (until it ends and the crashing market hits the wagies)

>>57553007
Wages are rising and household debts are lower than theyve been in like 20 years

>>57554666
Everyone is broke and in debt just trying to make it to payday. The cost of living has doubled since 2020 and wages have either remained stagnate or moved up 10%. Everyone's fucked.