Kinja reply list

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TRUMP DELENDUS EST (fka Chatham Harrison)Hamilton Nolan
1/14/16 9:49am
We can only hope that this lasts long enough to leave thousands of managers out of work, displaced by the efficiencies of our new economy. Maybe they’ll realize that a social safety net is worthwhile.

A man can dream.
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  MudbudTRUMP DELENDUS EST (fka Chatham Harrison)
  1/14/16 9:59am
  It’s called “Corporate Welfare” and they get it already.
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  TheZoneTripperTRUMP DELENDUS EST (fka Chatham Harrison)
  1/14/16 10:12am
  No, they won’t, not until they hit bottom. I remember seeing an op-ed article by one of these douchebags years ago where he was puffing his chest out about how if us little nothings put him and his friends out of work, they’ll come down and start taking jobs from the middle and lower class people. I want them to try. The idea of one of these entitled whitebread motherfuckers struggling to work a 12-hour shift on a 100+ degree factory floor is hilarious.
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EldritchHamilton Nolan
1/14/16 9:44am
I work for a bank (we’ll see for how much longer, they’re laying off half my department but they “extended” me another 60 days) and our investment clients have been abandoning ship like rats. It feels like a lot of people have looked at the markets, looked at their money manager and have found them wanting. Retention rates are plummeting and the bank is scrambling to “reposition” itself, as if a re-brand and updated website will do anything. There’s a renewed focus on people with $3+ million of investable assets, as if there are just tons of those people laying around.

Banking is getting insane and you can plainly tell the people at the top of the house are panicking. Maybe I should take my severance and change careers. >_>
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  SqarrEldritch
  1/14/16 10:07am
  Golly gee! Deregulation sure worked out fine, didn’t it?
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  ReburnsABurningReturnsEldritch
  1/14/16 10:07am
  Certain types of banking, maybe, but for the most part this change in investment venue still leaves the money floating around in the banking system.
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e.nonHamilton Nolan
1/14/16 9:51am
interesting data points via zero hedge (finally, after all of these years predicting an imminent collapse, it seems to actually be here):
- GoPro – Down 83% since August
- Twitter – Down 65% since April
- Fitbit – Down 63% since August
- LinkedIn – Down 27% since March
- Netflix – Down 20% since December
And of course there are the heavyweights that everyone must own:
- Amazon – Down 17% in last two weeks
- Google – Down 10% in last two weeks
- Facebook – Down 14% since November
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  thepreppere.non
  1/14/16 10:01am
  To be fair, everything is down this week. It’s more the oil prices fault than anything else.
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  BrianGriffine.non
  1/14/16 10:09am
  On the other side, though, you see companies like JP Morgan and WebMD having great gains.
  
  Consumer electronics and social media are not good sectors right now.
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IAMBlastedBiggsLostBurnerHamilton Nolan
1/14/16 9:40am
Way ahead of them on this one. I'm putting a lot of my money into hip new startups that the neat-o cool types with the glasses and beards and skinny jeans are into! Those kickstander thingies are all they go on about down at the local chain coffee store locations!
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  IanIAMBlastedBiggsLostBurner
  1/14/16 9:46am
  “I need money to start a company that knits stuff.”
  
  :/
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  SkuzapoIAMBlastedBiggsLostBurner
  1/14/16 9:55am
  You must have about $5.30 with all the money those type of people can afford.
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Cherith CutestoryHamilton Nolan
1/14/16 9:41am
All that money that’ll never trickle down now. :(
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  AskYourMotherCherith Cutestory
  1/14/16 9:56am
  I think that money was trickling up.
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  Cherith CutestoryAskYourMother
  1/14/16 10:11am
  No, no. It’ll trickle down. Just have to be patient. You can't make money unless you give your money to millionaires and hope they tip you when you wait their table.
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nopunin10didHamilton Nolan
1/14/16 9:56am
I wouldn’t knock all mutual funds, though you’re definitely pointing blame in the right direction. There are some reasonably decent mutual funds out there that are competitive with index funds on fee percentages and performance.

The nice thing about mutual funds is the wide variety of investment strategies that exist. If you want high risk, those are around. If you want long-term growth, those are around too. If you know you’re reaching the beginning of retirement, and you just want fund security, there are mutual funds that are all invested in “cash” assets too.

Index funds are fantastic, but they haven’t been around long enough to give people that sort of variety. Because they’re more hands-off, they are definitely better for avoiding overhead costs, but ultimately they’re not much different than a mutual fund.

It’s just that you have a few fewer people involved in deciding the composition and value of your investment, which tends to work out for the best.
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  WideStancenopunin10did
  1/14/16 10:31am
  Aren’t index funds just a another type of mutual fund? One of those “safe strategies” you mention?
  
  Honest question. I’m fiscally ignorant, financially dangerous, and did not pay taxes until I was 36 years old.
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  nopunin10didWideStance
  1/14/16 12:58pm
  They are. The difference is that with an index fund, the funds manager sets a composition based on existing market indices, like the DJIA or S&P, or some foreign market index.
  
  Then, the fund invests in assets proportional to those indices’ compositions. After that is set up, the fund basically runs on autopilot.
  
  A traditional mutual fund relies on its fund managers for composition. Sometimes that changes infrequently, as with an index fund. Sometimes, a mutual fund is very active in buying and selling into different components.
  
  The active funds could hypothetically make more profit under a smart manager, but usually it's a wash. The extra transaction fees in all that trading, as well as the additional labor cost of the fund management, start to add up.
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ReburnsABurningReturnsHamilton Nolan
1/14/16 10:37am
Indexing does have it’s limits though.

Let’s just say, in a hypothetical world, that all money invested in equity markets was switched to index funds tonight. Let’s further say that Apple, the largest company by market cap in the S&P 500 came out tomorrow and said that it had lost it’s mind and spent it’s entire pile of cash, an ungodly sum of money currently, purchasing 18'’ dildos painted with lead paint. How would the market react to this obviously terrible news that would have massive ramifications for Apple’s stock valuations?

The market would do nothing, because the indexes would be obsessed with keeping their S&P 500 portfolio balanced.

Point being that markets need actors, and some decent chunk of change so that they actually have the power to move pricing, to actually accomplish the task of incorporating new information into stock prices. We smaller investors should stick to index funds, and super pricey market actors who can’t outperform should be pushed out of business, but there is still an important role for active investors who are out there attempting to beat the market to play in our economy.

Warren Buffet, who is a big advocate of smaller investors using index funds, has famously said that one of the best things to ever to happen to him, someone who very much is an active investor, is the propagation of the Efficient Market Hypothesis. Reducing the number of people willing to actively think about the price of any given stock makes it easier for people who are actually smart enough to beat the market more often than they lose to it to beat the market.
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  BurneeezeReburnsABurningReturns
  1/14/16 11:22am
  Prop traders can serve price discovery function just fine. The fact is most investment “strategies” have nothing to do with real-world valuations.
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  ReburnsABurningReturnsBurneeeze
  1/14/16 11:27am
  Prop traders who would get their equity from ... where exactly?
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Hip Brooklyn StereotypeHamilton Nolan
1/14/16 9:42am
Omfgz, dudebroz. Dudebroz as far as the eye can see.

Assuming those are Wolf of Wall Street costumes? I figured originality wasn’t the strong suit of this constituency.

“I can still wear my suit, bro, I just need to put on this mask and I’m good!”
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  LucyLovesLeatherHip Brooklyn Stereotype
  1/14/16 9:59am
  Those are masks that my sister and I made for Paramount pictures when they were doing a publicity event for the Wolf of Wallstreet DVD release. We made them in like 3 days, since it was really short notice. It was very surreal, getting that message asking for 20 wolf masks! Thought it was a prank at first.
  
  Really surreal to see this picture on Gawker!
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  Boomer PetwayHip Brooklyn Stereotype
  1/14/16 10:02am
  Dudebroz really dug Witcher 3.
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Alex CHamilton Nolan
1/14/16 9:51am
It’s almost as if, businesses make bad decisions, and then customers abandon that business of their own free will and accord. Like, without government getting involved. I could’ve sworn there’s a name for this phenomenon. I think it’s called the free something or the rather? Oh well, it’ll come to me.
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GeorgeGeoffersonLivesHamilton Nolan
1/14/16 9:57am
Only tangentially related, but I laugh every time they have a business reporter on one of the morning shows on cable news spouting off why the market is doing this or that. They have no fucking idea and often contradict themselves within the same hour. You’d be better off going to a fortune teller for advice.
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  Nimbus The Legend - Riding on air like a cloudGeorgeGeoffersonLives
  1/14/16 1:30pm
  seriously, the market is like a roulette table in vegas...
  
  you can pretend to know what you are doing all you want...
  
  but you arent fooling anyone with any common sense...
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