6 ms·

I suppose if you’re operating on the assumption that tech stocks are vastly overinflated then this makes sense. Otherwise I would expect the people that are reg

by Gravey 1y ago

I suppose if you’re operating on the assumption that tech stocks are vastly overinflated then this makes sense. Otherwise I would expect the people that are regularly buying these securities would be happy that they’re increasing in value, no?

hdgvhicv 1y ago
The ponzu scheme of SPY is great until it stops. 10% of America’s payroll gets lumped into it each month and generational wisdom is you get a 10% ROI despite the economy growing 2%. At some point that will collapse, and it won’t be pretty.
- thunky 1y ago
  > The ponzu scheme of SPY is great until it stops TINA (there is no alternative). Inflation will eat your cash. Bonds hardly generate (real) returns unless you want to take big risks with duration. Real estate is over inflated. Gold is speculative. Crypto is...not real. What's left?
  - ath3nd 1y ago
    Valuation of companies tied to their real current profits! If a company is unprofitable now, it doesn't make sense and is wholly wrong that its stock is trading 1000x more than other companies which actually turn a profit. The difference from public ownership to public gambling is huge in its impact to society, especially when the markets crashes.
    - thunky 1y ago
      So rather that someone auto-investing a slice of their paycheck into a s&p fund in their 401k, they should instead learn how to evaluate company financials so they can pick winners from a non tax advantaged account? This is a losing strategy for the large majority, and it's been demonstrated repeatedly that even professional investors can't beat the market especially after considering fees. https://www.investopedia.com/articles/investing/030916/buffetts-bet-hedge-funds-year-eight-brka-brkb.asp https://www.investopedia.com/articles/investing/030916/buffe...
  - idiomat9000 1y ago
    Shorts om the ponzian pyramids.
    - hdgvhicv 1y ago
      The market can stay Irrational longer than you can stay solvent
keernan 1y ago
No. The 'goal' of investing (e.g. regularly buying) means attempting to own as many shares as possible. That is achieved by buying low and selling high. Buyers benefit from lower prices, not higher. So many investors get this concept wrong. I suppose they get excited because what they bought went up in value and they have a sense of being enriched. But, that is backwards. That is what they want 20-40 years from now when it will almost certainly be the case that prices are not just higher, but much higher, than today. But, when they are buying shares, the goal is to pay the lowest price possible. If I am 20 years old, I am screaming: crash and burn baby! Crash and burn! Gimme those shares at 50% off yesterday's price.
- thunky 1y ago
  > I am screaming: crash and burn baby! Crash and burn! Gimme those shares at 50% off yesterday's price. Sure, but once you reach the point where you have a lot of money in the market you probably won't enjoy watching 50% of it disappear, even if it means your next auto investment is for a nice bargain price. Also, when the stock market crashes usually bad things accompany it. Like a depressed economy and job losses.
  - ath3nd 1y ago
    > Also, when the stock market crashes usually bad things accompany it. Like a depressed economy and job losses. It's our own fault for tying the stock market performance to our economy's performance. Why would I, a train worker, should have my pension affected by Sam a Altman's bad decision making or by Enron's lies and deception. It's our own fault that the stock market is so volatile and that we tie so much of our economy to a financial gambling machine that's become increasingly divorced from reality in the last couple of decades. Like you are putting money on a stock that trades at 1000 on a company that is 10 years away from being profitable? You deserve your money to go poof.
    - thunky 1y ago
      > Like you are putting money on a stock that trades at 1000 on a company that is 10 years away from being profitable? You deserve your money to go poof. Who is suggesting that? NVDA trades at 57x earnings, MSFT 37, GOOG 22. The article is about META and they are 27x. These are the big companies that dominate the s&p that we're talking about. I don't think anyone is suggesting to put their life savings into Anthropic. They can't anyway, it's not public. The s&p PE is 30, which is high, but still lower than it was in 2020 before the AI "bubble" started.

by Gravey 1y ago

hdgvhicv 1y ago

The ponzu scheme of SPY is great until it stops. 10% of America’s payroll gets lumped into it each month and generational wisdom is you get a 10% ROI despite the economy growing 2%. At some point that will collapse, and it won’t be pretty.

thunky 1y ago
> The ponzu scheme of SPY is great until it stops TINA (there is no alternative). Inflation will eat your cash. Bonds hardly generate (real) returns unless you want to take big risks with duration. Real estate is over inflated. Gold is speculative. Crypto is...not real. What's left?
- ath3nd 1y ago
  Valuation of companies tied to their real current profits! If a company is unprofitable now, it doesn't make sense and is wholly wrong that its stock is trading 1000x more than other companies which actually turn a profit. The difference from public ownership to public gambling is huge in its impact to society, especially when the markets crashes.
  - thunky 1y ago
    So rather that someone auto-investing a slice of their paycheck into a s&p fund in their 401k, they should instead learn how to evaluate company financials so they can pick winners from a non tax advantaged account? This is a losing strategy for the large majority, and it's been demonstrated repeatedly that even professional investors can't beat the market especially after considering fees. https://www.investopedia.com/articles/investing/030916/buffetts-bet-hedge-funds-year-eight-brka-brkb.asp https://www.investopedia.com/articles/investing/030916/buffe...
- idiomat9000 1y ago
  Shorts om the ponzian pyramids.
  - hdgvhicv 1y ago
    The market can stay Irrational longer than you can stay solvent

keernan 1y ago

No. The 'goal' of investing (e.g. regularly buying) means attempting to own as many shares as possible. That is achieved by buying low and selling high. Buyers benefit from lower prices, not higher. So many investors get this concept wrong. I suppose they get excited because what they bought went up in value and they have a sense of being enriched. But, that is backwards. That is what they want 20-40 years from now when it will almost certainly be the case that prices are not just higher, but much higher, than today. But, when they are buying shares, the goal is to pay the lowest price possible. If I am 20 years old, I am screaming: crash and burn baby! Crash and burn! Gimme those shares at 50% off yesterday's price.

thunky 1y ago
> I am screaming: crash and burn baby! Crash and burn! Gimme those shares at 50% off yesterday's price. Sure, but once you reach the point where you have a lot of money in the market you probably won't enjoy watching 50% of it disappear, even if it means your next auto investment is for a nice bargain price. Also, when the stock market crashes usually bad things accompany it. Like a depressed economy and job losses.
- ath3nd 1y ago
  > Also, when the stock market crashes usually bad things accompany it. Like a depressed economy and job losses. It's our own fault for tying the stock market performance to our economy's performance. Why would I, a train worker, should have my pension affected by Sam a Altman's bad decision making or by Enron's lies and deception. It's our own fault that the stock market is so volatile and that we tie so much of our economy to a financial gambling machine that's become increasingly divorced from reality in the last couple of decades. Like you are putting money on a stock that trades at 1000 on a company that is 10 years away from being profitable? You deserve your money to go poof.
  - thunky 1y ago
    > Like you are putting money on a stock that trades at 1000 on a company that is 10 years away from being profitable? You deserve your money to go poof. Who is suggesting that? NVDA trades at 57x earnings, MSFT 37, GOOG 22. The article is about META and they are 27x. These are the big companies that dominate the s&p that we're talking about. I don't think anyone is suggesting to put their life savings into Anthropic. They can't anyway, it's not public. The s&p PE is 30, which is high, but still lower than it was in 2020 before the AI "bubble" started.