SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Big Dog's Boom Boom Room
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Kayaker who wrote (156718)9/9/2011 10:29:30 AM
From: Salt'n'Peppa  Read Replies (1) of 206093
 
kayaker, as I understand it, it is not a matter of total money in the system. It is a matter of "money pressure" for lack of a better term.
Most of my portfolio is in cash, waiting for the right time to deploy into my favourite stocks. Many others are in the same situation.
That IS money on the sidelines.

"First, we should be very clear that there is no such thing as money going into or out of a secondary market."
I totally disagree.
I will agree that there is no such thing as an increase or decrease in total shares going into or out of a secondary market.
The value of that static number of shares is constantly going up or down and is driven by money going into and out of the very same secondary market.

Of course there is a seller for every buyer. That much is crystal clear and not up for debate.
The debate arises around the price at which those transactions occur.
It is the buying or selling pressure that is important to me. That is what causes a bull or bear rally.
Money flowing in from the sidelines causes upward pressure. Money flowing out from stocks to the sidelines causes downward pressure.

How else do you account for headlines such as, "Today $2 trillion was wiped off the stock markets."?
The number of total shares has not changed, so what did change?
S&P
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News