Billionaires Dumping Stocks, Economist Knows Why

reply to post by Tardacus


Quite frankly, they know what's going to be happening in the future because they're in "the club". These people planned this, they are profiting from it, they know when they're pulling the plug and resetting the system and they plan to walk away with as much as possible.

It's corruption, insider trading, financial terrorism...

There are more than a few reasons to dump stock in retail. It might be that they are expecting demand to plummet when the economy really tanks (after the election) but it could also be that they know something about that company that exposes them to greater risk.

For example, you might think that a cheap retailer like the one mentioned would do well when people have no money, but maybe they have far too much property, or maybe their supply lines are weak and likely to collapse if the market goes.

Retailers that supply extremely low priced items have driven down the cost of those products to the lowest they can, meaning their suppliers are extremely vulnerable to collapse. If a $1 shop has salt and pepper shakers for $1, they are buying them from a supplier for less (probably less than .50) and the manufacturer/supplier is barely making a profit on that product. One little shift in the markets and consumer confidence could collapse that manufacturer or supplier, and the retailer then has nothing to sell.

Then imagine that same situation over hundreds of thousands of products...

We know what's coming. We'll see the election, then we'll watch the collapse as prices soar and tax increases, spending is cut and the € collapses. America is months away from a sh*t storm IMO.

well here is a good place to do "some" research...but don't depend on it as a sole source....be very careful what you do, you are small fish in a lake of great white sharks...take it from someone that day-traded

reply to post by LiberalSceptic


I don't think that China can claim their debt really. They are too dependant on the USA to buy all their tat.

sounds like a good time to open a Couple of Bucks store - since the dollar is being devalued - $ stores will not be able to sell at that price --- sort of like what happened to the 5 and dimes in the 70's .... what do you think >?

If the big players "know" the markets are going to collapse they don't dump stock they short it! There is much more money to be made by stocks going down than there is on stocks going up. To make matters worse most investors are unable legally to make these kind of wagers. So only the rich can place these bets cause if you don't got tonnes (Millions) of dollars to back up your call you can't get in on it, that’s the law. The thing to watch after company collapses, environmental catastrophes, and terror attacks is who is benefiting, always quite telling.
Look up who benefited from the airline crash of September 11th, or the Deep Sea Horizon. Seems to me there is always someone in the “know” no matter how spontaneous it appears.
brice

The way it crashes is hard and fast. Auto stops are triggered, dominos fall and anyone who is caught off guard is in for a nasty surprise.

It is, basically, what separates a gambling house from a stock exchange: at any given instance, the entire rug is pulled from the floor, on everyone, at one moment. The momentum grows, as those who need first contact their broker in order to dump, place their sells. No fun, standing in line to lose money. Even less fun if you're not yet in line!

Most stocks pay no dividend whatsoever, hence, the only reason people hold the paper is in the hope the price will go up. There is NO OTHER REASON to hold. This sentiment is refreshed, and quickly takes root, during a crash.

It's like musical chairs. If you're holding when the music stops, you lose. And they can play anything, at any time.

Ah, well. Parents never listen to their children, even when they are spying on them. A pity.

reply to post by brice

There is much more money to be made by stocks going down than there is on stocks going up. To make matters worse most investors are unable legally to make these kind of wagers. So only the rich can place these bets cause if you don't got tonnes (Millions) of dollars to back up your call you can't get in on it, that’s the law.

You don't know what you are talking about.
There is LESS money to make by shorting a stock than by going long (buying) a stock.

Example:
A stock sells for $10 per share.
You buy (go long) 100 shares. Your cost $1000.
It could be Apple and goes up to $700 per share. Your profit $69,000.

If you go short and the price drops to $.01 your profit is maxed out at $999.

And anybody with a stock trading account can short stocks. You don't need to have millions of dollars.
I did my first short when my account value was less than $10,000.

Originally posted by samkent
reply to post by brice

 

There is much more money to be made by stocks going down than there is on stocks going up. To make matters worse most investors are unable legally to make these kind of wagers. So only the rich can place these bets cause if you don't got tonnes (Millions) of dollars to back up your call you can't get in on it, that’s the law.

You don't know what you are talking about.
There is LESS money to make by shorting a stock than by going long (buying) a stock.

Example:
A stock sells for $10 per share.
You buy (go long) 100 shares. Your cost $1000.
It could be Apple and goes up to $700 per share. Your profit $69,000.

If you go short and the price drops to $.01 your profit is maxed out at $999.

And anybody with a stock trading account can short stocks. You don't need to have millions of dollars.
I did my first short when my account value was less than $10,000.

You are right, you caught me on a bad day. Good catch, I owe you a tall cold one.
Thanks for holding my feet to the fire.
brice

reply to post by 1BornPatriot


like Petsmart they will become Dollarstores...as in plural

Ever heard of the fiscal cliff? What about taxmageddon? Have you heard that they may be coming?

Originally posted by davidmann

Ah, well. Parents never listen to their children, even when they are spying on them. A pity.

A very interesting analogy. I like it, despite its imperfections. To run with it....

I can see the truth there. And maybe big daddy would be smart to sometimes listen to the wisdom of his eldest sons. The input of a new generation....

.... on the other hand, one has to wonder if the parent is acting on wisdom he has not yet shared with his children.

In which case I say it's kind of crappy parenting to assume your kids just aren't mature enough for the knowledge (their lack of maturity would be partly YOUR fault anyway, Daddy Dearest). Maybe someone needs to call DSS on this fool before more children are put in danger.

Now if this isn't a case of mistaken immaturity, and the parent really is acting in an "every man for himself" kind of way... or making a secret escape plan just for the adults... well... that's not the act of a "parent" at all, but a TRAITOR.