News this week that inflation eased more than expected in October solidified the view that the Federal Reserve is done with its most aggressive rate-hike campaign in four decades.
And that could be a boon for the stock market and your 401(k).
News this week that inflation eased more than expected in October solidified the view that the Federal Reserve is done with its most aggressive rate-hike campaign in four decades.
And that could be a boon for the stock market and your 401(k).
Oh good! The imaginary numbers will get larger.
You shouldn’t dismiss those as imaginary as money doesn’t pop out of thin air. All those gains need to be created by real workers being exploited harder elsewhere.
When tech companies that have never made a profit are still being traded for significant amounts of money per share, I’d call it imaginary numbers.
I prefer potential money. Still imaginary, but “could be” money.
Stock price isn’t necessarily tied with profits, nor doesn’t have to. It’s more of a sign of confidence the company will do better than it currently is. That measurement with a lot of tech companies was tied to increasing marketshare.
The hope is that eventually a company’s high marketshare can be leveraged to produce profits later.
“I’m confident that this company that has never made money will make money someday, so I’m going to pay $30 a share for it” still sounds like it’s imaginary money to me.
The more apt comparison would simply be gambling, if you wanted to be reductionist.
That’s because you don’t understand how new and growing companies work. You don’t show a “profit” if you invest your revenue back in the company.
No, it’s called expected value. Amazon never made a profit for decades until it did.
Interest means that money does, in fact, pop out of thin air.
The green line requires blood.
The reality is that’s what billionaires and, by proxy, the rest of us actually live on.