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Sweatshop - Pure Drama
Meltdown
How's yer Stock portfolio doing Prowler?
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<blockquote data-quote="Joe" data-source="post: 1160249" data-attributes="member: 9"><p>Other noticeable aspect is a 'buy and hold' strategy doesn't reflect what Markets were originally used for. The term 'market' dates back to a time when farmers brought their produce to a weekend city market & sold it to the public. Ie - 1 bushel of wheat, husks of corn etc. Back then the farmers would sell it for what they could get for it. Ie might be $2 one year or $17 the next depending on market conditions or demand.</p><p></p><p>But they never 'held' it indefinitely since as a perishable good its shelf life was finite.</p><p></p><p>Fast forward to today. The 'market' is comprised of digital entities known as stocks. And they rise and fall according to supply and demand. One year Apple stock could be worth $300 per share but the next $100. So it seems absurd to 'buy and hold' something which could be worth less next year as opposed to selling it before the price goes down. Likewise the farmer generally doesn't buy and hold produce. He sells it while he can get a good price.</p><p></p><p>For this reason I dont understand people getting attached to 'their stocks or company shares' forver when in reality they are just like the perishable goods a farmer sells in the weekend city market. They should unload at least some of them while the going is good - just like the farmer sells his produce</p><p></p><p>Stocks are really just a valuation and their share price is a reflection of what the share owner can sell those shares st that moment in time.</p><p></p><p>I had this conversation with some st TBC that a trading account isnt a savings account - that their stock portfolios can plummet like they have recently. And I got into a heated argument. But stocks don't really represent a person's net wealth. It's only when the shares are cashed in that their actual wealth is fully realized. So if a seller receives $300 per share of Apple stock and puts that money into the bank, buys gold, land whatever, those are hard assets which are a truer measure of a person's assets.</p></blockquote><p></p>
[QUOTE="Joe, post: 1160249, member: 9"] Other noticeable aspect is a 'buy and hold' strategy doesn't reflect what Markets were originally used for. The term 'market' dates back to a time when farmers brought their produce to a weekend city market & sold it to the public. Ie - 1 bushel of wheat, husks of corn etc. Back then the farmers would sell it for what they could get for it. Ie might be $2 one year or $17 the next depending on market conditions or demand. But they never 'held' it indefinitely since as a perishable good its shelf life was finite. Fast forward to today. The 'market' is comprised of digital entities known as stocks. And they rise and fall according to supply and demand. One year Apple stock could be worth $300 per share but the next $100. So it seems absurd to 'buy and hold' something which could be worth less next year as opposed to selling it before the price goes down. Likewise the farmer generally doesn't buy and hold produce. He sells it while he can get a good price. For this reason I dont understand people getting attached to 'their stocks or company shares' forver when in reality they are just like the perishable goods a farmer sells in the weekend city market. They should unload at least some of them while the going is good - just like the farmer sells his produce Stocks are really just a valuation and their share price is a reflection of what the share owner can sell those shares st that moment in time. I had this conversation with some st TBC that a trading account isnt a savings account - that their stock portfolios can plummet like they have recently. And I got into a heated argument. But stocks don't really represent a person's net wealth. It's only when the shares are cashed in that their actual wealth is fully realized. So if a seller receives $300 per share of Apple stock and puts that money into the bank, buys gold, land whatever, those are hard assets which are a truer measure of a person's assets. [/QUOTE]
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Sweatshop - Pure Drama
Meltdown
How's yer Stock portfolio doing Prowler?
