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WelbyQuentin
Discussion » Questions » Finance » Here is a scenario. Tell me if you agree.
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Here is a scenario. Tell me if you agree.

1. High income but < $200,00 per year start buying shares of stock, artificially inflating the market values. The really big guys stay out.
2. Bubble bursts...major sell-offs, thus prices drop.
3. When the market settles at a MUCH lower level, the big guys buy up everything, thus creating a slow rebound.
4. The VERY wealthy become even more wealthy and the mid-wealthy lose out.
5. Inflation kicks in and we po'folks pay more for stuff.
6. Corporations ride it out by cutting jobs.

Posted - December 19, 2017
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Responses


  • 22891
    not sure, never heard of it
      December 19, 2017 3:33 PM MST
    0

  • 6124
    7.  You find yourself scrounging for cans and bottles to help keep a roof over your head.
      December 19, 2017 6:29 PM MST
    1

  • 216
    Hasn't that already been going on for decades? 
      December 19, 2017 6:32 PM MST
    1

  • That stuff goes on with people who play the market with buying and selling; in the last thirty years it has become the most common style of investment for people who like medium to high risk.
    But there's another way to invest. Select the companies that pay reasonably steady dividends about 4% above the interest rates paid by banks on savings. Buy a spread of twelve to twenty stocks spread across three to five fields or types of business/industry, eg, property, light industrial, medical, technical, financial. Stay put and don't buy or sell unless a change of management or market conditions suggests the probability of that company's decline. Ride out the rises and falls in market price because they mean nothing except at the moment of sale. This creates a steady and reliable income.
      December 19, 2017 11:26 PM MST
    0