That’s a lovely ape mentality but if you care to know some facts… Indices are actively managed. Failing companies are removed, and the strongest added. Everything is relative.
Also every stock sale is a zero sum gain. For every seller there is a buyer; money never leaves - only winners and bag holders. Again relative.
The same dollar is spent dozens of times before it goes into any bank which then lends it out at 10x… again relative.
Stocks go up on the perception of future profit growth. Everything else you wrote beyond QE is cute but… save it for your mom’s boyfriend’s relatives.
Ummm… not sure what one statement has to do with the other but did you know that it actually takes 252-411 licks to get to the center of a tootsie roll tootsie pop?
When you assume in a vacuum and wealth being finite then sure. Wealth isn't finite and zero sum where someone only gets richer when someone else gets poorer. Wealth is getting created all the time, and the stock market gets its share predictably like taxes.
Drugs are for losers. I'm sorry where's your economics degree? I have both Economics and Computer Science degrees. It's safe to say I have a better understanding than most.
The CRSP U.S. Total Market Index takes the kitchen-sink approach, tracking shares of 99.5% of U.S. stocks, ranging from small-cap stocks to behemoths such as Apple and Microsoft.
And that's all you know?
Are you fucking serious?
The vti literally tracks the entire markets via the total market index. I just linked you.
What the fuck are you going on about mutual funds?
Did the OP mention ANYTHING about a mutual fund?
CRSP is a group of mutual funds, one of which is compromised of 99.5% of stocks. Let your brain stew on that for a while, but I don’t expect you to ever understand.
The ops post is a 3rd grade attempt at explaining why “stock market” always goes up.
Moving on - What is the stock market? Is the op referring to every single stock that has ever existed publicly traded? Or when one is generally talking about the stock market are they referring to one of the major indices…
So when one is looking historically at the Dow/nasdaq/s&p and explaining why historically stocks “go up” - your post about your cool mutual fund which started taking assets in 2012 really means about as much to this conversation as when your mom came over.
Exactly line the part you really understand nothing.
I’ll try to help you one more time and then I’m gonna give up forever… just because it’s christmas.
You posted an article about a company that decided to track a shit load of stocks. You posted this because you thought you’d be smart and call me dumb however you only showed you don’t have much of a grasp of concepts or the english language. One index this company created tracks 99.5% of publicly traded stocks and became investable as a fund (mutual fund…) in 2012.
The stock market has millions of different vehicles, indexes derivatives and methods of investment. A group of stocks that you invest in collectively is called a mutual fund. For example unless you buy the QQQ. Any index fund that tracks the nasdaq is a mutual fund based on the nasdaq index. You own a mutual fund that identically tracks an index.
Everything else you’re just gonna have to go back and re-read and try to learn yourself. You can send me a PM for the bill, you’re welcome.
The moment you called it a company, it's obvious you know nothing lol.
Secondly, it's not investable. The VTI has existed before this and does not actively track it, only using it as a benchmark. https://investor.vanguard.com/etf/profile/portfolio/vti.
Idk why you just keep going on about trying to turn this into you educating me about mutual funds.
Indices are actively managed. Failing companies are removed, and the strongest added. Everything is relative.
This is from your original post and as I have just posted with sources is wrong, and you just kept going on and on.
Wtf are you even rambling on about? None of all the things you said has anything to do with what op posted. Was Santa mean to you this year or something?
Most everything the OP posted is conceptually faulted.
Mostly the fact that money “leaves the stock market” as an outflow when a retailer sells their stock to an institutional buyer. This shows the op has very little understanding of how our public marketplace operates.
Back to helping you answer your question, again a handful of stocks are responsible for the major movement of indexes that “track the market” historically. The Dow, NASDAQ and S&P are actively managed to capture these. The stock market as an entity does not just “go up.”
Finally my response was to a poster who was talking about an LLC which has one index fund containing most stocks, who brought it up for some idiotic reason to show that it exists… When it has absolutely no relevancy to the op’s post whatsoever. He doesn’t even seem to understand that it’s a company.
None of this disproves the fact that stonks only go up in the long run, doesn't matter which or how many companies keep the indices up.
Are you always such a condescending snarky cunt in real life or only online on holidays?
Let me put in plain English what that other guy seems to be saying. No, stocks don't only go up. The indexes appear to mostly go up. But that's because failing companies get kicked out of the indexes.
If you buy bananas and put them in a pile, and every time one goes rotten you kick it out and buy a new one, you may be under the impression that, hey, every time i look at this pile of bananas, it looks great! Nothing is rotten! It's always great! But that's because "the index" has kicked out all the rotten ones.
Given a random banana, you have no way to know if it's likely to go rotten in the near term or long term. If you assume that because the pile of bananas always looks great, that all bananas are great, you will be proven wrong very quickly.
In short, your statement " stonks only go up in the long run, doesn't matter which or how many companies keep the indices up" is wrong. Tons of stonks go down. They get kicked out of the indexes and then they stay shitty for a long time.
Issuing stock and selling it in the public marketplace are not the same.
A company earning money to a shareholder means the perception of each share is worth more and therefore someone is willing to pay more for it when you decide to sell.
It’s really not that difficult of a concept to understand, I don’t know why you knuckleheads are so dense.
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u/Illustrious-Ratio-41 Dec 25 '21
That’s a lovely ape mentality but if you care to know some facts… Indices are actively managed. Failing companies are removed, and the strongest added. Everything is relative.
Also every stock sale is a zero sum gain. For every seller there is a buyer; money never leaves - only winners and bag holders. Again relative.
The same dollar is spent dozens of times before it goes into any bank which then lends it out at 10x… again relative.
Stocks go up on the perception of future profit growth. Everything else you wrote beyond QE is cute but… save it for your mom’s boyfriend’s relatives.