3. So for professional investors: at this point it's spread globally, but even in China, a country of billions, it's "only" killed 150 or so people, which is a tragedy but financially basically nothing. Obviously the concern is the containment/spread BUT
-
Show this thread
-
4. Do these professional investors truly think that - since they don't need the money right now and therefore CAN hold depreciating stock - the various affected companies really won't bounce back?
2 replies 0 retweets 2 likesShow this thread -
Replying to @BootlegGirl
Not needing the money immediately doesn't translate to holding depreciated stock. It takes a couple of days for the money to actually materialise, but you're not on the hook for any loss in that time
1 reply 1 retweet 1 like -
Replying to @LizardOrman
I know, I just figure if I was a day trader, I'd figure "China, the country of, again, billions of people, will probably have this under control in a month" enough to not start selling every holding with any connection to the country
2 replies 1 retweet 2 likes -
Replying to @BootlegGirl
If you're a day trader, selling now to dodge a fall that will take until next month to recover from is exactly what you do. You're thinking of actual investors
1 reply 0 retweets 3 likes -
Replying to @LizardOrman @BootlegGirl
Yeah that's exactly the point I'm trying to make "Fundamental investors" like Buffet says you should be are the exact opposite of day traders be day traders cause most of this movement
1 reply 1 retweet 3 likes -
By definition, a day trader has no opinion on the actual underlying business of the companies they're investing in (which is why Buffet hates them) It's all a game where they're placing bets essentially on how all the other day traders currently feel
1 reply 1 retweet 6 likes -
The connection to the actual real world economy is only theoretical Their relationship to "real" investors is adversarial and is a kind of "keeping each other honest" relationship
1 reply 1 retweet 3 likes -
Like the argument is if you banned day trading entirely like Buffet has jokingly proposed then the market could stagnate and the old boy network would *never* sell stock even as the real company was going bankrupt in order to deliberately slow economic change
2 replies 1 retweet 2 likes -
I'm not so sure that's such a great argument though Like the price we pay for the existence of day traders is real people losing money on essentially just bullshit gambling games
3 replies 1 retweet 4 likes
I remember when the fad was trying to get people to trade in binary options, which have no more real economic meaning than betting on a coin flip Literally "At this time tomorrow will Google's share price be higher or lower than it is right now"
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.