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12 years of money dumped into stocks in 5 months!


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#11 Rogerdodger

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Posted 10 April 2021 - 10:08 AM

Is there such a thing as taking money out of the market? Because for every seller taking money out, there is a buyer who buys what the seller is selling and puts the same money in what the seller took out.

 

I believe that the article is referring to the total stock market capitalization.

For example, despite the pandemic, the total market value of listed American companies increased 20.22% during the year 2020.

 

On December 31st 2020 total market capitalization of the U.S. stock market was $45,310,009.1 million. Three months later it was

 $49,107,685.7 million (3/31/2021)

PS: During the 2008 crash it was: 12/31/2008 $11,461,287.6 million.

DATA LINK

 

S&P 500 Earnings 2020 Q4: Most Overvalued Advancing Market Ever

Institutions Have Raised $3 Trillion in Cash. They're Starting to Put That Money Back to Work

 

 

I believe that a very small portion of stimulus money given back to the public wasn't used to buy stocks...it was likely used to keep on living.

 

The majority of people living from pay check to paycheck are not TRADING stocks anyway. They are buying stuff and staying in debt according to reports:

Nearly Half of Americans 55+ Have No Retirement Savings

Brits who saved money during the coronavirus pandemic want to splash cash on cars

They may invest into the market thru their 401K, etc. but they do not normally buy or trade stocks.

 

However I do know people who recently bragged on social media that they were TRADING stocks and Bitcoins for the first time in their lives using their unneeded big government windfall money... and making big easy money doing so.


Edited by Rogerdodger, 10 April 2021 - 11:33 AM.


#12 dasein

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Posted 11 April 2021 - 07:24 AM

 

 

 

Equity funds have attracted more than half a trillion dollars in the past five months, exceeding inflows recorded over the previous 12 years, according to data from BofA, which has likened the stampede to a "melt-up" in markets.

 

And how much of this same capital was taken out of the market in just the month of March 2020 alone?

 

Context, like opposing viewpoints, are always needed...and wanted.

 

Fib

 

 

Is there such a thing as taking money out of the market? Because for every seller taking money out, there is a buyer who buys what the seller is selling and puts the same money in what the seller took out.   I don't believe the amount of money taken out of the market in March 2020 was anywhere near what NEW Money has come in during the past 5 months since the "stimulus" money was being dropped from B-52 bombers.

 

The only buyer needed for massive selling is either the specialist or market maker of the issue...money then initially goes to cash (money markets) for the trader.

 

So, although a half a trillion dollars has come in over the last 5 months, more than FOUR trillion left the markets in March 2020 alone...around 12% of what was "lost".

 

Some money moved into the debt class (for safety), commodity class (a lower dollar), housing (nesting)...a whole myriad of different financial related areas.

 

Anyway....

 

The coronavirus sell-off sent investors fleeing into money market funds, which ballooned well above $4 trillion, surpassing the peak of the financial crisis, according to research by LPL Financial.

 

Here's the article on it: https://tinyurl.com/y9n9l6ry

 

My opinion? I believe that a very small portion of stimulus money given back to the public wasn't used to buy stocks...it was likely used to keep on living.

 

Fib

so somehow you know fib rhe money came from secialists/mms who took it out of the market last year? 


best,
klh

#13 qqqqtrdr

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Posted 11 April 2021 - 09:46 AM

With all this stimulus much of the money is going back into market...    Chances are this trend will continue as long as the stimulus checks keep coming...   The money is being spent from the government will continue in a 4th and 5th stimulus checks as long as inflation stays in check...   Yes eventually the piper will be paid...     Yes, the market is overbought from a PE point of view but all this free money needs to go somewhere.



#14 pdx5

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Posted 11 April 2021 - 05:46 PM

RD, the recipients of stimulus checks do not need to purchase stocks directly or immediately. They buy stuff and money spent by those people does not disappear in a hookah pipe. It keeps circulating in the economy and eventually ends up in hands of people who do not need to buy stuff at Walmart and those people seldom place it under the mattress. Those people buy assets like housing and stocks.


"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule