/biz/ - Business & Finance

Is there a quick rundown on how to stop being a wagecuck? Halp

>>11412592
Big Guy is bigger than any of us in real life. He leads a one man crusade to topple the bogs, who will fall first?

http://www.macrotrends.net/1319/dow-jones-100-year-historical-chart

Here's something that nobody really understand with how market cycles really work. If you go to the link I've provided above and look at the Dow Jones 100 year historical charts and make sure they're adjusted for inflation, it may be clear to you that the markets trade sideways around half the time.

Adjusted for inflation the Great depression in 1929 didn't break the previous high for 25 years. Similarily, 1980's were completely flat due to inflation, but markets went "up" technically.

In our lifetimes we are familiar with this, 2000-2013 the S&P didn't break the high made in 2000.

What does that mean? It means that assets behave irrationally and then do nothing. Particular fundamental causes skyrocket every asset class all at once for a period of time and then do nothing for a VERY long time. This could be due to presidents, war etc.

You will hear everyone who knows just a little about investing thinking that there will be a big dip this year of around 10% in S&P because it went up around 25% last year and historical average is 7%. They are wrong.

Long term traders are aware of this, so they are leveraging themselves as much as possible to pump whatever they can for as long as this lasts. This is why warren buffet says be greedy when others are fearful, he didn't mean be greedy during recessions as during those times many companies are not making money, which is against his investment philosophy.

So when I said before that Oil will skyrocket and Gold will skyrocket, it's only a result of a number of other markets doing the same, it doesn't really matter what it is.

Think of it like this, you're a bank and make a few billion on the S&P last year, but it's getting too risky to keep buying, so you find another sleepy market to invest that few billion into to "diversify." That market will then start "breaking out" and as it does they sell a bit at a time and buy dips to increase leverage.

Bitcoin will close daily candle at 12,000.

>>5240317

Mice have been trained to outperform Hedge fund mangers. There are guys out there who don't even want to know what the full name of the ticker they're trading is so they can just stick to technicals.

Easier to get a job with a mathematics phd, however. Those guys do the advanced modeling.

>>5240361

Bitcoin is both a fad and the future. As more money goes into the system the less volatile it will become and the more usable it becomes. If you buy something on Amazon in bitcoin and ten minutes later Bitcoin crashed 10% then the vendor gets fucked if they don't clear in real time... even small amounts of slippage make it impractical with tons of transactions like that.

I don't yet understand why there are so many coins though, Crypto isn't my area, but if this is like the .com bubble, then maybe bitcoin and one-two other big ones will survive like Amazon did and the others won't.

Thinking bitcoin will be all future currency is Naive- I saw someone saying that somewhere.