Where do people invest during stock market crash (USA Q4 2018 crash)?
Question: Where do people invest during stock market crash (USA Q4 2018 crash)?
Assumptions:
- When viewing S&P500 as a proxy to the USA market we can observe that it loses market cap (and price respectively)
- Also, investments AREN'T moving into 'safe heaven' 3-Month Treasury Bills
(based on the assumption that it's interest rate rises because investors prefer other means of investing)
Sources:
- S&P 500 price
- S&P 500 market cap
- 3-month Treasury Bills
stocks stock-markets standard-and-poors-500
New contributor
|
show 2 more comments
Question: Where do people invest during stock market crash (USA Q4 2018 crash)?
Assumptions:
- When viewing S&P500 as a proxy to the USA market we can observe that it loses market cap (and price respectively)
- Also, investments AREN'T moving into 'safe heaven' 3-Month Treasury Bills
(based on the assumption that it's interest rate rises because investors prefer other means of investing)
Sources:
- S&P 500 price
- S&P 500 market cap
- 3-month Treasury Bills
stocks stock-markets standard-and-poors-500
New contributor
Feel free to correct me if I'm wrong and/or ask for any details
– Artem Bernatskyi
5 hours ago
I'm sorry, I mean that when market loses market cap it goes somewhere. So by 'money' I mean the difference in market cap in S&P 500 between it's top and after it's crash, correct me if this doesn't make any sense.
– Artem Bernatskyi
5 hours ago
Lost value is just lost value, it's not movement of money. Today someone is willing to pay $500 for one of your rare tulip bulbs, tomorrow you can only sell them for $10. The value of your market cap dropped, but no money changed hands outside of the individual purchases.
– Hart CO
5 hours ago
Yeah, my question is incorrect, I see it now, so instead i should ask where do people invest after stock market crash, aren't I ?
– Artem Bernatskyi
4 hours ago
At least for today, Dec 24, most folks are just leaving their money right where it is The NASDAQ only traded 1,724,366,735 shares today, which is quite low. Last Friday 7,609,010,000 shares traded hands. The fact that the price or the market cap changed by a lot doesn't necessarily mean that a lot of money is moving around right now, though they may certainly change in the near future.
– Charles E. Grant
4 hours ago
|
show 2 more comments
Question: Where do people invest during stock market crash (USA Q4 2018 crash)?
Assumptions:
- When viewing S&P500 as a proxy to the USA market we can observe that it loses market cap (and price respectively)
- Also, investments AREN'T moving into 'safe heaven' 3-Month Treasury Bills
(based on the assumption that it's interest rate rises because investors prefer other means of investing)
Sources:
- S&P 500 price
- S&P 500 market cap
- 3-month Treasury Bills
stocks stock-markets standard-and-poors-500
New contributor
Question: Where do people invest during stock market crash (USA Q4 2018 crash)?
Assumptions:
- When viewing S&P500 as a proxy to the USA market we can observe that it loses market cap (and price respectively)
- Also, investments AREN'T moving into 'safe heaven' 3-Month Treasury Bills
(based on the assumption that it's interest rate rises because investors prefer other means of investing)
Sources:
- S&P 500 price
- S&P 500 market cap
- 3-month Treasury Bills
stocks stock-markets standard-and-poors-500
stocks stock-markets standard-and-poors-500
New contributor
New contributor
edited 55 mins ago
New contributor
asked 5 hours ago
Artem Bernatskyi
1063
1063
New contributor
New contributor
Feel free to correct me if I'm wrong and/or ask for any details
– Artem Bernatskyi
5 hours ago
I'm sorry, I mean that when market loses market cap it goes somewhere. So by 'money' I mean the difference in market cap in S&P 500 between it's top and after it's crash, correct me if this doesn't make any sense.
– Artem Bernatskyi
5 hours ago
Lost value is just lost value, it's not movement of money. Today someone is willing to pay $500 for one of your rare tulip bulbs, tomorrow you can only sell them for $10. The value of your market cap dropped, but no money changed hands outside of the individual purchases.
– Hart CO
5 hours ago
Yeah, my question is incorrect, I see it now, so instead i should ask where do people invest after stock market crash, aren't I ?
– Artem Bernatskyi
4 hours ago
At least for today, Dec 24, most folks are just leaving their money right where it is The NASDAQ only traded 1,724,366,735 shares today, which is quite low. Last Friday 7,609,010,000 shares traded hands. The fact that the price or the market cap changed by a lot doesn't necessarily mean that a lot of money is moving around right now, though they may certainly change in the near future.
– Charles E. Grant
4 hours ago
|
show 2 more comments
Feel free to correct me if I'm wrong and/or ask for any details
– Artem Bernatskyi
5 hours ago
I'm sorry, I mean that when market loses market cap it goes somewhere. So by 'money' I mean the difference in market cap in S&P 500 between it's top and after it's crash, correct me if this doesn't make any sense.
– Artem Bernatskyi
5 hours ago
Lost value is just lost value, it's not movement of money. Today someone is willing to pay $500 for one of your rare tulip bulbs, tomorrow you can only sell them for $10. The value of your market cap dropped, but no money changed hands outside of the individual purchases.
– Hart CO
5 hours ago
Yeah, my question is incorrect, I see it now, so instead i should ask where do people invest after stock market crash, aren't I ?
– Artem Bernatskyi
4 hours ago
At least for today, Dec 24, most folks are just leaving their money right where it is The NASDAQ only traded 1,724,366,735 shares today, which is quite low. Last Friday 7,609,010,000 shares traded hands. The fact that the price or the market cap changed by a lot doesn't necessarily mean that a lot of money is moving around right now, though they may certainly change in the near future.
– Charles E. Grant
4 hours ago
Feel free to correct me if I'm wrong and/or ask for any details
– Artem Bernatskyi
5 hours ago
Feel free to correct me if I'm wrong and/or ask for any details
– Artem Bernatskyi
5 hours ago
I'm sorry, I mean that when market loses market cap it goes somewhere. So by 'money' I mean the difference in market cap in S&P 500 between it's top and after it's crash, correct me if this doesn't make any sense.
– Artem Bernatskyi
5 hours ago
I'm sorry, I mean that when market loses market cap it goes somewhere. So by 'money' I mean the difference in market cap in S&P 500 between it's top and after it's crash, correct me if this doesn't make any sense.
– Artem Bernatskyi
5 hours ago
Lost value is just lost value, it's not movement of money. Today someone is willing to pay $500 for one of your rare tulip bulbs, tomorrow you can only sell them for $10. The value of your market cap dropped, but no money changed hands outside of the individual purchases.
– Hart CO
5 hours ago
Lost value is just lost value, it's not movement of money. Today someone is willing to pay $500 for one of your rare tulip bulbs, tomorrow you can only sell them for $10. The value of your market cap dropped, but no money changed hands outside of the individual purchases.
– Hart CO
5 hours ago
Yeah, my question is incorrect, I see it now, so instead i should ask where do people invest after stock market crash, aren't I ?
– Artem Bernatskyi
4 hours ago
Yeah, my question is incorrect, I see it now, so instead i should ask where do people invest after stock market crash, aren't I ?
– Artem Bernatskyi
4 hours ago
At least for today, Dec 24, most folks are just leaving their money right where it is The NASDAQ only traded 1,724,366,735 shares today, which is quite low. Last Friday 7,609,010,000 shares traded hands. The fact that the price or the market cap changed by a lot doesn't necessarily mean that a lot of money is moving around right now, though they may certainly change in the near future.
– Charles E. Grant
4 hours ago
At least for today, Dec 24, most folks are just leaving their money right where it is The NASDAQ only traded 1,724,366,735 shares today, which is quite low. Last Friday 7,609,010,000 shares traded hands. The fact that the price or the market cap changed by a lot doesn't necessarily mean that a lot of money is moving around right now, though they may certainly change in the near future.
– Charles E. Grant
4 hours ago
|
show 2 more comments
2 Answers
2
active
oldest
votes
There is no money, and it doesn’t go anywhere. A company’s market cap is just the market’s opinion of what it’s worth. That opinion changes all the time, but no actual money is involved. Money only comes into it when shares (or derivatives) are actually bought and sold.
But we are taking here S&P 500 not an individual stocks. In the case of S&P 500 money can't just go out of market.
– Artem Bernatskyi
5 hours ago
1
@ArtemBernatskyi The S&P 500 is just an aggregate of individual stocks, where the individual companies that comprise it go, so it goes.
– Hart CO
5 hours ago
1
If your house is worth $300k and the real estate market collapses and your house is now worth $250k, where did $50k of cash go to? It didn't go anywhere because there was no $50k of cash involved. The market value of your simply changed (dropped $50k). Stocks are the same. Last week Facebook was trading at $145. Today it's $125. Its market value changed. Anyone who sold it during that period received money. Even if they took that money out of the market and put it in a bank, the buyer put the money back into the market. The market doesn't create money.
– Bob Baerker
5 hours ago
2
This is a bear market not a crash. For the latter, see 1929 or 1987. People put their money anywhere they want: Cash or MM account, banks, bonds, bond ETFs, Treasuries, preferred stocks, mattresses (?).
– Bob Baerker
4 hours ago
1
Stock market "experts" on the news are right less than the weather people.
– quid
3 hours ago
|
show 3 more comments
The price of U.S. Treasury securities are up in the past month. Gold is up and the Yen is up. The Swiss Franc is not completely at a one month high.
There have been ETF inflows into a Treasury fund that has a duration of about 1.9 years. But it appears that an investor could outperform the income of that fund with a three-month bill in their own Treasury Direct account. However, there is gain in the securities price of the longer term duration.
There have also been ETF inflows into emerging-markets but ETF outflows out of high-yield debt. So I don't agree with the inflows into emerging-markets.
Even six-month non-government bond funds are down in the past month.
But investors that outperform the market over long term periods basically buy what is down as long as there is no bad news specific to the stock or bond being bought.
New contributor
All true. Welcome4 new user.
– Fattie
30 mins ago
And Merry Christmas! :)
– Fattie
29 mins ago
add a comment |
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
There is no money, and it doesn’t go anywhere. A company’s market cap is just the market’s opinion of what it’s worth. That opinion changes all the time, but no actual money is involved. Money only comes into it when shares (or derivatives) are actually bought and sold.
But we are taking here S&P 500 not an individual stocks. In the case of S&P 500 money can't just go out of market.
– Artem Bernatskyi
5 hours ago
1
@ArtemBernatskyi The S&P 500 is just an aggregate of individual stocks, where the individual companies that comprise it go, so it goes.
– Hart CO
5 hours ago
1
If your house is worth $300k and the real estate market collapses and your house is now worth $250k, where did $50k of cash go to? It didn't go anywhere because there was no $50k of cash involved. The market value of your simply changed (dropped $50k). Stocks are the same. Last week Facebook was trading at $145. Today it's $125. Its market value changed. Anyone who sold it during that period received money. Even if they took that money out of the market and put it in a bank, the buyer put the money back into the market. The market doesn't create money.
– Bob Baerker
5 hours ago
2
This is a bear market not a crash. For the latter, see 1929 or 1987. People put their money anywhere they want: Cash or MM account, banks, bonds, bond ETFs, Treasuries, preferred stocks, mattresses (?).
– Bob Baerker
4 hours ago
1
Stock market "experts" on the news are right less than the weather people.
– quid
3 hours ago
|
show 3 more comments
There is no money, and it doesn’t go anywhere. A company’s market cap is just the market’s opinion of what it’s worth. That opinion changes all the time, but no actual money is involved. Money only comes into it when shares (or derivatives) are actually bought and sold.
But we are taking here S&P 500 not an individual stocks. In the case of S&P 500 money can't just go out of market.
– Artem Bernatskyi
5 hours ago
1
@ArtemBernatskyi The S&P 500 is just an aggregate of individual stocks, where the individual companies that comprise it go, so it goes.
– Hart CO
5 hours ago
1
If your house is worth $300k and the real estate market collapses and your house is now worth $250k, where did $50k of cash go to? It didn't go anywhere because there was no $50k of cash involved. The market value of your simply changed (dropped $50k). Stocks are the same. Last week Facebook was trading at $145. Today it's $125. Its market value changed. Anyone who sold it during that period received money. Even if they took that money out of the market and put it in a bank, the buyer put the money back into the market. The market doesn't create money.
– Bob Baerker
5 hours ago
2
This is a bear market not a crash. For the latter, see 1929 or 1987. People put their money anywhere they want: Cash or MM account, banks, bonds, bond ETFs, Treasuries, preferred stocks, mattresses (?).
– Bob Baerker
4 hours ago
1
Stock market "experts" on the news are right less than the weather people.
– quid
3 hours ago
|
show 3 more comments
There is no money, and it doesn’t go anywhere. A company’s market cap is just the market’s opinion of what it’s worth. That opinion changes all the time, but no actual money is involved. Money only comes into it when shares (or derivatives) are actually bought and sold.
There is no money, and it doesn’t go anywhere. A company’s market cap is just the market’s opinion of what it’s worth. That opinion changes all the time, but no actual money is involved. Money only comes into it when shares (or derivatives) are actually bought and sold.
answered 5 hours ago
Mike Scott
13.2k3648
13.2k3648
But we are taking here S&P 500 not an individual stocks. In the case of S&P 500 money can't just go out of market.
– Artem Bernatskyi
5 hours ago
1
@ArtemBernatskyi The S&P 500 is just an aggregate of individual stocks, where the individual companies that comprise it go, so it goes.
– Hart CO
5 hours ago
1
If your house is worth $300k and the real estate market collapses and your house is now worth $250k, where did $50k of cash go to? It didn't go anywhere because there was no $50k of cash involved. The market value of your simply changed (dropped $50k). Stocks are the same. Last week Facebook was trading at $145. Today it's $125. Its market value changed. Anyone who sold it during that period received money. Even if they took that money out of the market and put it in a bank, the buyer put the money back into the market. The market doesn't create money.
– Bob Baerker
5 hours ago
2
This is a bear market not a crash. For the latter, see 1929 or 1987. People put their money anywhere they want: Cash or MM account, banks, bonds, bond ETFs, Treasuries, preferred stocks, mattresses (?).
– Bob Baerker
4 hours ago
1
Stock market "experts" on the news are right less than the weather people.
– quid
3 hours ago
|
show 3 more comments
But we are taking here S&P 500 not an individual stocks. In the case of S&P 500 money can't just go out of market.
– Artem Bernatskyi
5 hours ago
1
@ArtemBernatskyi The S&P 500 is just an aggregate of individual stocks, where the individual companies that comprise it go, so it goes.
– Hart CO
5 hours ago
1
If your house is worth $300k and the real estate market collapses and your house is now worth $250k, where did $50k of cash go to? It didn't go anywhere because there was no $50k of cash involved. The market value of your simply changed (dropped $50k). Stocks are the same. Last week Facebook was trading at $145. Today it's $125. Its market value changed. Anyone who sold it during that period received money. Even if they took that money out of the market and put it in a bank, the buyer put the money back into the market. The market doesn't create money.
– Bob Baerker
5 hours ago
2
This is a bear market not a crash. For the latter, see 1929 or 1987. People put their money anywhere they want: Cash or MM account, banks, bonds, bond ETFs, Treasuries, preferred stocks, mattresses (?).
– Bob Baerker
4 hours ago
1
Stock market "experts" on the news are right less than the weather people.
– quid
3 hours ago
But we are taking here S&P 500 not an individual stocks. In the case of S&P 500 money can't just go out of market.
– Artem Bernatskyi
5 hours ago
But we are taking here S&P 500 not an individual stocks. In the case of S&P 500 money can't just go out of market.
– Artem Bernatskyi
5 hours ago
1
1
@ArtemBernatskyi The S&P 500 is just an aggregate of individual stocks, where the individual companies that comprise it go, so it goes.
– Hart CO
5 hours ago
@ArtemBernatskyi The S&P 500 is just an aggregate of individual stocks, where the individual companies that comprise it go, so it goes.
– Hart CO
5 hours ago
1
1
If your house is worth $300k and the real estate market collapses and your house is now worth $250k, where did $50k of cash go to? It didn't go anywhere because there was no $50k of cash involved. The market value of your simply changed (dropped $50k). Stocks are the same. Last week Facebook was trading at $145. Today it's $125. Its market value changed. Anyone who sold it during that period received money. Even if they took that money out of the market and put it in a bank, the buyer put the money back into the market. The market doesn't create money.
– Bob Baerker
5 hours ago
If your house is worth $300k and the real estate market collapses and your house is now worth $250k, where did $50k of cash go to? It didn't go anywhere because there was no $50k of cash involved. The market value of your simply changed (dropped $50k). Stocks are the same. Last week Facebook was trading at $145. Today it's $125. Its market value changed. Anyone who sold it during that period received money. Even if they took that money out of the market and put it in a bank, the buyer put the money back into the market. The market doesn't create money.
– Bob Baerker
5 hours ago
2
2
This is a bear market not a crash. For the latter, see 1929 or 1987. People put their money anywhere they want: Cash or MM account, banks, bonds, bond ETFs, Treasuries, preferred stocks, mattresses (?).
– Bob Baerker
4 hours ago
This is a bear market not a crash. For the latter, see 1929 or 1987. People put their money anywhere they want: Cash or MM account, banks, bonds, bond ETFs, Treasuries, preferred stocks, mattresses (?).
– Bob Baerker
4 hours ago
1
1
Stock market "experts" on the news are right less than the weather people.
– quid
3 hours ago
Stock market "experts" on the news are right less than the weather people.
– quid
3 hours ago
|
show 3 more comments
The price of U.S. Treasury securities are up in the past month. Gold is up and the Yen is up. The Swiss Franc is not completely at a one month high.
There have been ETF inflows into a Treasury fund that has a duration of about 1.9 years. But it appears that an investor could outperform the income of that fund with a three-month bill in their own Treasury Direct account. However, there is gain in the securities price of the longer term duration.
There have also been ETF inflows into emerging-markets but ETF outflows out of high-yield debt. So I don't agree with the inflows into emerging-markets.
Even six-month non-government bond funds are down in the past month.
But investors that outperform the market over long term periods basically buy what is down as long as there is no bad news specific to the stock or bond being bought.
New contributor
All true. Welcome4 new user.
– Fattie
30 mins ago
And Merry Christmas! :)
– Fattie
29 mins ago
add a comment |
The price of U.S. Treasury securities are up in the past month. Gold is up and the Yen is up. The Swiss Franc is not completely at a one month high.
There have been ETF inflows into a Treasury fund that has a duration of about 1.9 years. But it appears that an investor could outperform the income of that fund with a three-month bill in their own Treasury Direct account. However, there is gain in the securities price of the longer term duration.
There have also been ETF inflows into emerging-markets but ETF outflows out of high-yield debt. So I don't agree with the inflows into emerging-markets.
Even six-month non-government bond funds are down in the past month.
But investors that outperform the market over long term periods basically buy what is down as long as there is no bad news specific to the stock or bond being bought.
New contributor
All true. Welcome4 new user.
– Fattie
30 mins ago
And Merry Christmas! :)
– Fattie
29 mins ago
add a comment |
The price of U.S. Treasury securities are up in the past month. Gold is up and the Yen is up. The Swiss Franc is not completely at a one month high.
There have been ETF inflows into a Treasury fund that has a duration of about 1.9 years. But it appears that an investor could outperform the income of that fund with a three-month bill in their own Treasury Direct account. However, there is gain in the securities price of the longer term duration.
There have also been ETF inflows into emerging-markets but ETF outflows out of high-yield debt. So I don't agree with the inflows into emerging-markets.
Even six-month non-government bond funds are down in the past month.
But investors that outperform the market over long term periods basically buy what is down as long as there is no bad news specific to the stock or bond being bought.
New contributor
The price of U.S. Treasury securities are up in the past month. Gold is up and the Yen is up. The Swiss Franc is not completely at a one month high.
There have been ETF inflows into a Treasury fund that has a duration of about 1.9 years. But it appears that an investor could outperform the income of that fund with a three-month bill in their own Treasury Direct account. However, there is gain in the securities price of the longer term duration.
There have also been ETF inflows into emerging-markets but ETF outflows out of high-yield debt. So I don't agree with the inflows into emerging-markets.
Even six-month non-government bond funds are down in the past month.
But investors that outperform the market over long term periods basically buy what is down as long as there is no bad news specific to the stock or bond being bought.
New contributor
edited 35 mins ago
New contributor
answered 1 hour ago
S Spring
772
772
New contributor
New contributor
All true. Welcome4 new user.
– Fattie
30 mins ago
And Merry Christmas! :)
– Fattie
29 mins ago
add a comment |
All true. Welcome4 new user.
– Fattie
30 mins ago
And Merry Christmas! :)
– Fattie
29 mins ago
All true. Welcome4 new user.
– Fattie
30 mins ago
All true. Welcome4 new user.
– Fattie
30 mins ago
And Merry Christmas! :)
– Fattie
29 mins ago
And Merry Christmas! :)
– Fattie
29 mins ago
add a comment |
Artem Bernatskyi is a new contributor. Be nice, and check out our Code of Conduct.
Artem Bernatskyi is a new contributor. Be nice, and check out our Code of Conduct.
Artem Bernatskyi is a new contributor. Be nice, and check out our Code of Conduct.
Artem Bernatskyi is a new contributor. Be nice, and check out our Code of Conduct.
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Feel free to correct me if I'm wrong and/or ask for any details
– Artem Bernatskyi
5 hours ago
I'm sorry, I mean that when market loses market cap it goes somewhere. So by 'money' I mean the difference in market cap in S&P 500 between it's top and after it's crash, correct me if this doesn't make any sense.
– Artem Bernatskyi
5 hours ago
Lost value is just lost value, it's not movement of money. Today someone is willing to pay $500 for one of your rare tulip bulbs, tomorrow you can only sell them for $10. The value of your market cap dropped, but no money changed hands outside of the individual purchases.
– Hart CO
5 hours ago
Yeah, my question is incorrect, I see it now, so instead i should ask where do people invest after stock market crash, aren't I ?
– Artem Bernatskyi
4 hours ago
At least for today, Dec 24, most folks are just leaving their money right where it is The NASDAQ only traded 1,724,366,735 shares today, which is quite low. Last Friday 7,609,010,000 shares traded hands. The fact that the price or the market cap changed by a lot doesn't necessarily mean that a lot of money is moving around right now, though they may certainly change in the near future.
– Charles E. Grant
4 hours ago