Trillions of dollars wiped from stock markets..

I wonder how many people, every day, liquidate their retirement funds in order to draw a pension. Some of them have the sense to sell a slice every year, or every quarter, as the time draws near.

Tesla down another 10% today, I see.

Tough for the people who had already sent their forms off.

I wonder where things will be in another month.
Depends if they came to you for advice!!
Even passive investors, near retirement, would be daft to have their money in , what was it you called them, low cost index funds!
The motive here was simlar - imminent impact of Orange Man. watch the equities (shares rather than bonds) you're holding.
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Green is gold, of which I bought some but not all at the best time, Orange is ManDy, Purple FTSE and Blue SPY500.
The dip will go lower I'm sure, but then should rally somewhat. I'll be looking for good quality strong stocks on the way back up (assuming.....)
I'll put the same funds up again in a week or so.

No, Tesla isn't something anyone would hold much % of "regardless". If M produces universal self-driving cars , new models, more cheaper cars, negotiates good deals in various countries , stops pratting about with Trump, etc, then Tesla would be much more investable.
Saying "Tesla has just gone down 10%" is silly. Nobody here claimed it was magic. Implying otherwise is JD trolling.

Bonds of varous qualities would make far more sense. The AAA rated bonds wouldn't flinch, but sit at the "bank rate", the low quality but higher yield corporate bonds would get hit when cos went bust, and then the higher rate convertible bonds sold to prop up other bonds.
The one I favor is around 80% high grade plus lower, which are manipulated (swaps carries & options traded), to keep the average up. It has rippled a bit recently but still positive over any couple of days. I expect it'll get hit for 1% or so, but it doesn't take too long to sell.
AFAIK the sensiblest thing to do with a pension pot you aren't using is to transfer 20k into an isa each year.
The money which went into the pension got the tax uplift, so all the years you keep it in there, its total yield is 20% ish higher.

However early we took slices from our pension pots the majority by far would be taxed. Worth avoiding high rate which of course is going to be easier for most.folk.
This is the ManDy fund I've shrunk into, shown here over the past 3 months. Unfamiliar wobbles in the past month. I've had a percentage China, India, Gold, Financials to boost the % a bit. You have to be very very careful not to "overweight" those. Financials particularly tend to swing, so you can time a "pop" and sell immediately, which is next day for a Fund.. It's fiddly but I'm learning. Yes it's a lot of work.
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The person you bought the house off ends up with it...dont they?
No. The unit of currency may as well be the Mars Bar. Houses became worth fewer Mars Bars than they were. That's all, no excess Mars Bars anywhere. Same number of Mars Bars buys the next house.
 
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So if I buy some shares for £100 and they go down in value and I sell them for £80, who ends up with the £20 I’ve lost? Where's it gone?
Investors often wonder where their money went when stocks plummet. Stock price shifts are more about changing perceptions of value rather than money physically moving from one place to another. So in truth, it doesn't vanish—instead, the investment's perceived value changes.

Say you buy 100 shares of Apple (AAPL) at $150 each. Later, supply chain issues arise or a new Apple product underperforms causing investors to lose confidence, which pushes the stock price to $100 per share. It's not really a $50 per share loss. Rather, it's a reflection of what investors are now willing to pay for Apple shares—the way a new car's value depreciates—the vehicle hasn't changed, but its market value does.

This paper loss becomes real only if you sell your shares at a lower price. Understanding this concept is crucial so you can navigate the often turbulent waters of the stock market without getting sunk.


 
With investments. Stock markets. Prices. All The question is simple.
Are you either.
£10 now or £20 next week.
I'm always £20 next week. And I'll probably invest some so it works for me.
Some people don't care or don't want to know anything. Just give me the £10 so I can spend it.
The two camps just don't understand each other.
 
So if I buy some shares for £100 and they go down in value and I sell them for £80, who ends up with the £20 I’ve lost? Where's it gone?
It’s a good point, but in reality the loss is just the decreased value of the shares, there is no transfer of funds.

Share value is purely calculated moment by moment at the stock exchange on the basis of supply and demand.
 
It’s a good point, but in reality the loss is just the decreased value of the shares, there is no transfer of funds.
Buy Mottie has just sold his shares
Share value is purely calculated moment by moment at the stock exchange on the basis of supply and demand.
And the calculation is based on shares being bought and sold all the time by investors. If there is no urgency to realise a share investment it becomes little more than a computer game.
 
..but where has it gone? If somebody had lost, surely someone else has gained? Money just doesn’t vanish into thin air unless it wasn’t really there in the first place.
People will have shorted the stock market.

You can make as much backing a stock to lose value
 
People will have shorted the stock market.

You can make as much backing a stock to lose value
Not true. Shorting a stock has a theoretically unlimited loss and a maximum gain.

If the share is worth £100 and goes to zero you gain £100. If it goes to £300 then you've lost £200.
 
Not true. Shorting a stock has a theoretically unlimited loss and a maximum gain.

If the share is worth £100 and goes to zero you gain £100. If it goes to £300 then you've lost £200.
you could make more money via traded options, but they are highly risky
 
Not true. Shorting a stock has a theoretically unlimited loss and a maximum gain.

If the share is worth £100 and goes to zero you gain £100. If it goes to £300 then you've lost £200.
What’s not true ?

You obviously don’t understand how it works.

If trader puts a large short position on a stock it will go down, they make money.

So out of trillions “lost” how much of it went to short position traders ?

Let me know if I can clear anything else up for you


You’ll be familiar with the above
 
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