The market is no longer controlled by “rational investors” or capitalists. The market is controlled by computer systems automatically trading small amounts of shares but across millions of servers, almost semi-collaboratively working to ensure the endless growth of their assets.
They’re even steeled against panic-selling because they don’t usually have knowledge of news like this, that would encourage even a hardened trader to divest in the long term. Nope, keep the diamond hands and let others jump in on the growth train!
Even when errors combine into freak events like flash crashes (which have happened in 2010 and 2018, for example) these systems can very quickly reinvest liquid assets and cooperatively inflate the market back to where it’s expected. Even in 2020 the market rebounded within like a year, compared to 4+ in 2008!
These investor types will never understand that the market does not have a “floor” anymore, it won’t ever hit zero. It’ll keep inflating itself indefinitely as it becomes more and more alienated from our material conditions.
My absolutely unfounded and uneducated opinion is: One day we’ll be past the point of a “crash”, instead we’ll see the market get so absurdly disproportionate to the reality on the ground that it will tear itself apart trying to attain growth in some kind of inflationary spiral.
The market is no longer controlled by “rational investors” or capitalists. The market is controlled by computer systems automatically trading small amounts of shares but across millions of servers, almost semi-collaboratively working to ensure the endless growth of their assets.
They’re even steeled against panic-selling because they don’t usually have knowledge of news like this, that would encourage even a hardened trader to divest in the long term. Nope, keep the diamond hands and let others jump in on the growth train!
Even when errors combine into freak events like flash crashes (which have happened in 2010 and 2018, for example) these systems can very quickly reinvest liquid assets and cooperatively inflate the market back to where it’s expected. Even in 2020 the market rebounded within like a year, compared to 4+ in 2008!
These investor types will never understand that the market does not have a “floor” anymore, it won’t ever hit zero. It’ll keep inflating itself indefinitely as it becomes more and more alienated from our material conditions.
My absolutely unfounded and uneducated opinion is: One day we’ll be past the point of a “crash”, instead we’ll see the market get so absurdly disproportionate to the reality on the ground that it will tear itself apart trying to attain growth in some kind of inflationary spiral.