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by derision 2337 days ago
As a small retail investor, and someone who's income puts me in the middle class, I've had big gains in my equities. I consider myself an "average person". Why should this make me want to riot in the streets? Is your implication that only the 0.01% actually own stocks? Even my grandmother, albeit managed by a financial advisor, has a stock portfolio that is benefiting from the current market activity.
6 comments

Look into Cantillion Effect

"...recipients of new money enjoy higher standards of living at the expense of later recipients..."[0]

[0] https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_the...

Ah, thank you! That's exactly what I was trying to think of when I posted this question 7 months ago: https://news.ycombinator.com/item?id=20164397

+50 internet points for you!

> I've had big gains in my equities

Stocks go up and down. When the whole reason that stocks go up is because a arbitrary number inside the fed and treasury databases went up, I'd argue that move up probably won't last forever. If you time the market then maybe you could profit off of this. Timing the market is hard, even when you can see the bigger picture.

But no, the .01% are the PE people who are using this imaginary money to transfer possession of real assets to themselves with 0 interest loans which will be subsidized as "too big to fail" in the event the whole scheme doesn't work out and the executives who are buying their own stock with the money to trigger their own 7 and 8 figure incentive packages before the scheme collapses then further triggering their golden parachutes.

You aren't the smart money here (neither am I).

You're not making as much as the tremendously wealthy; your equities likely represent a tiny fraction of your income.

If your equities are going up 10% a year but you only have $20k in the market, but make $100k in salary, and your salary growth is falling behind the cost of living, you're not doing well, particularly compared to the person with $100M in the market and not going to work for a living.

Because it's taking huge amounts of treasuries purchased to simply support the market. You're seeing stability, but your children are seeing a higher debt burden.
Because when gravity reassert itself and the market finally crashes, the hedge fund guys will get out early and you and your grandma are going to be left holding the bag, again.
My positions are hedged
As a small retail investor, I'd very much like all this artificial growth in my portfolio to stop so I can buy more investments at more reasonable prices and get better returns in the long term.