Anonymous
Anonymous asked in Business & FinanceInvesting · 11 months ago

My theory about the stock market?

I thought about this for many years as I watch the market which I no longer invest in. To me it looks like the super wealthy wait for middle class people to put a ton of money in the stock market for their retirement, then the wealthy cash out the stocks to take a profit which causes a recession and takes all of the money from the middle class, then when the wealthy see trends going back up they buy back their stock and repeat the process. It seems like a big piggy bank for them and the richest of the rich never get hurt during the stock market only the middle class and smaller companies.

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  • 10 months ago

    Usually financial institutions who has large amount stock will sell and trigger stop losses and trigger more people and see the price go down and trigger more selling until a financial crisis

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  • 10 months ago

    No one has any special knowledge about when the best time is to jump in and out of the market.

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  • 11 months ago

    I am not completely agree with you, it can be the because of people are not determining the trending stocks for investment.

    Try to follow and accept some stock market news and researches, blogs or reports to understand exactly.

    Source(s): Kalkine Media
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  • 11 months ago

    So you haven't figured out the key factor... DON'T SELL. I rarely sell, and then only when a company is not meeting my expectations. My investment philosophy is Buy High, Buy MORE Low... every paycheck I'm allocating funds to stocks, to savings and to early debt retirement. I do more stock buying when the market is down, and more savings and debt retirement when the market is high but I'm always contributing to all three (eventually I'll be out of debt then will just have the savings & investment allocations to deal with).

    I buy a mix of high dividends stocks (lot of REITs), dividend paying slower growth stocks and non-dividend paying growth stocks, the net result is my investment income is slowly ticking up quarter after quarter...

    I've pre-mapped out what positions I'm going to add to or start new positions in so a market sell off is just a chance to get through the plan on the cheap, so it becomes a opportunity not a time to panic. Since I don't plan on selling ever, I could care less what others are willing to pay me to take my stocks away from me.

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  • 11 months ago

    You may have thought about your premise for years, but you have studied nothing that would support your asinine opinion.

    You have no idea how the market works, nor do you understand basic economics and/or finance.

    No one with an IQ greater that your shoe size would support your theory...

    I hope your retirement account is handled professionally, if not you're doing be in deep poopy

    Source(s): from THE STREET
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  • Anonymous
    11 months ago

    you're a little paranoid with your conspiracy theory.

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  • 11 months ago

    That makes no sense. Those who try to cash out and buy back stock at strategic times typically lose money. They do get hurt. Even if they were super wealthy when they started that, they'd be less wealthy after doing it. Those who make money in the stock market are typically those who keep their money in the market and don't try to do what you have theorized.

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  • nt
    Lv 6
    11 months ago

    You are incredibly wrong. True story....$2000 a year for 12 years into an IRA way back when.

    Current value as of last night: $438,781. (Probably down about .40-.50% today with the market)

    Its currently about 29% cash but there is a small amount of CDs within the IRA too.

    Now, I WILL owe income taxes on all of it but I will not need it for many years if ever.

    I have a fairly new HSA with only about $20k in it and I have just started slowly buying a no fee ETF. Only $3300 of that so far. I buy more every month and extra when I see a big down day. Hope to have it 60-70% invested within a year.

    I retired at 39. Never made more than $50k in a year in my life.

    Without stocks, It would have been impossible.

  • 11 months ago

    this isn't a question, ediot

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  • 11 months ago

    You're just now figuring out that it's a ponzi scheme? Everyone knows that.

    • The Old Guy
      Lv 6
      11 months agoReport

      Your comment is as dumb as the person who has just explained his theory, didn't think there were that many a.. h...'s

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