Figured I should warn people against LARPing as Economists

[Gamdwelf]

Capitalism is evil etc etc.

So dumb. People invest in the stock Market for the same reason you get an education, or plant a tree, or grow food.

[Lord Berserker]

So dumb. People invest in the stock Market for the same reason you get an education, or plant a tree, or grow food.

I've always wanted to do so myself, but I heard it requires very shrewd investment knowledge and to me it comes off like gambling really.

All I know is buy low sell high.

[Gamdwelf]

I've always wanted to do so myself, but I heard it requires very shrewd investment knowledge and to me it comes off like gambling really.

All I know is buy low sell high.

Depends on what your buying and knowing about what your buying.

In the real world knowledge is power the more you know about something, from growing crops to trading stocks the better at those things you will be.

[Tradewind]

Stock Markets are not a reliable marker for economic impacts barring massive problems (2008). Too prone to emotional flux.

Look to currencies/forex.

[Lord Berserker]

Stock Markets are not a reliable marker for economic impacts barring massive problems (2008). Too prone to emotional flux.

Look to currencies/forex.

So what you're saying is our Economy is doomed all the time!?

[Tradewind]

So what you're saying is our Economy is doomed all the time!?

Not quite But currency is usually slower to respond and recover, even in 08/09 values dropped but it was over the course of weeks and months, its recovery even slower. Dropping 9-11% overnight is kind of...insane.

[Lord Berserker]

Not quite But currency is usually slower to respond and recover, even in 08/09 values dropped but it was over the course of weeks and months, its recovery even slower. Dropping 9-11% overnight is kind of...insane.

From what my Economist friend told me in very very simple terms was. A fast drop is usually less dangerous than a slow decline.

[Glorious Leader]

I put on my wizard hat and cast magic missile!

I cast laffer curve and summon a 2/2 ghost of Ludwig Von Mises

[Deleted]

For More on How Quickly the Britbong Stocks Rebounded see Andrew Neil's twitter (@afneil). A British Newsman.

A economist would understand what cherry-picking a market is.

[Lord Berserker]

Many investors make a profit completely by manipulating money, whereby contributing nothing to society.

... You do know stocks are an investment of money, so they actively ARE contributing, but for a profit.

[Deleted]

Well, I'm sure it'll be the worst anyway. All the smart people told me so. Only a silly person could believe that the United Kingdom is capable of a being an independent nation.

Only a total moron would believe there is such a concept as an independent nation. Does UK produce all its food/energy?

[Spectral]

Only a total moron would believe there is such a concept as an independent nation. Does UK produce all its food/energy?

Independence doesn't imply a complete lack of trade.

[Deleted]

Well done ignoring the GBPUSD FX impact

Not to mention the effects on credit spreads / liquidity

Do you even economics

[Gamdwelf]

Well done ignoring the GBPUSD FX impact

Not to mention the effects on credit spreads / liquidity

Do you even economics

Most people don't.

[Lord Berserker]

Shame I couldn't type my post fast enough, because now you look like both a complete asshole and a total buffoon.

Not exactly following you there fam.

How is investing in stocks not investing in a company and thus not contributing?

- - - Updated - - -

Your economist friend would have a very hard time making that argument, especially for the UK.

Well, let's see.

Sharp decline followed by a rebound happen all the time.

Slow constantly declines are called depressions and don't happen all the time and are bad.

See, I am not an economist, but sounds like you're full of shit there. The UK is not in a long constant depression.

[Deleted]

Not exactly following you there fam.

How is investing in stocks not investing in a company and thus not contributing?

Nothing goes straight into the business of the shares you buy unless it is a fresh offer of new shares. That is not what you are looking at with the likes of the FTSE100. You are looking at a transfer in equity only, and paying a price for it.

[Deathquoi]

This is a crazy stupid thread.

[Yoshimiko]

Your economist friend would have a very hard time making that argument, especially for the UK.

Fast drops lead to rebounds almost every time. That or the company/country is going under *Right* now.

Slow declines are a depression. These are super bad and not always easy to recover from. You can take a 20% hit in stocks, you can't take a 1% hit every month for 20 months, though. The market doesn't react to depression - it DOES react to immediate 10-20 point drops. There's profit to be made there!

But hey, That's stocks. We're talking about a country leaving a united nations. It's really hard to say how those nations are going to respond. They could totally fuck over the GBP by refusing all trade if pressured by the group as a whole.

[Lord Berserker]

I don't get it. You have no leg to stand on yet your hubris is unmatched.

I find it pretty hilarious you declare hubris yet you never read my posts.

"Alot of investors simply buy stocks" that's still an investment of money into a company, they still profits people. So they DO contribute to the society by investing into companies.

Secondly.

My leg is "A sharp decline followed by a rebound is better than a slow constant decline"

I am honestly wondering what the fuck are you reading from my posts. At least Smashorc had the decency to actually tell me why I was misguided, you just sat there going "DOHOHOHOH YOU IMBICLE YOU CANNOT INTO ECONOMY LIKE I"

[Deathquoi]

I shouldn't be surprised that a thread that started with OP cherrypicking data points to make it seem like global markets aren't in freefall isn't going well, but this is a mess.