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Discussion Starter · #1 ·
"But the “revelation” that retail investors are fighting a rigged game against the Wall Street hedge fund behemoths is hardly a revelation at all. In fact, it is merely the latest example in a long series of events showing that the stock market was never meant to bring riches and fortune to the average investor.
Instead, when the story is told in its full context, there is only one obvious conclusion to be drawn:
The Markets Are Rigged."

 

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But the markets do bring riches and fortune to the average investor, every day.

Indeed, a record 6.71% (or 8,386,508 out of 125,018,808 total U.S. households) can now claim millionaire status. That's up from 6.21% in 2018 and just 5.81% in 2017.​

Note those numbers are very different from the 12-13 million households that have a million in net worth, because that figure includes home equity. The numbers above are a million in investible assets.

Anyway, your article's theme is that the Fed is propping up asset prices. That is not really a surprise to anybody reading. That theme is a far cry from the quote you provide about hedge fund behemoths having some edge. Most hedge funds underperform the market, which means you can beat the majority of hedge funds simply by investing in a total stock market index fund with a low expense ratio, like VTSAX (0.05% ER).

P.S. - The only reason that the number of millionaire households is only 8.3 million (or 12-13 million) is that Americans spend too much and save too little, mainly on cars, houses (as evidenced by the high numbers of millionaire households when including home equity), and eating out. Americans borrow too much. Spend too much. Save too little. And they start too late.

We do not preach to our kids the value of ownership in a capitalist system. The reality is that if you start at age 18 and consistently save and invest, it is very difficult not to become a millionaire in the United States.
 

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I have money in AMC. All the research is there, this will get big. There are billions of naked shorts on the market and these "meme stocks" have been consistently lied about in the media and by folks such as Motley Fool that are owned by Citadel. Citadel is also the cleearing house that is routing most buy orders for these stocks to the dark pool instead of through lit exchanges as they should be. There is MASSIVE amounts of corruption and manipulation being done every day by Citadel and other large hedge funds and it's coming to light more and more. There is a difference between shorting a stock you think will tank and waiting to let it happen and what Citadel is doing, which is shorting a stock for a company that you own billions of dollars in bonds in, then generating billions of synthetic shares to short to force the price down even more and bankrupt the company to guarantee your profits. Then having the media sources that you sponsor lie about what's happening with the stock on a daily basis while using computer algorithms to do horizontal trades on these stocks, creating identical daily charts for them nearly every day--which is not possible on a naturally progressing stock. They are spending billions of dollars on short interest and spending billions of dollars on marketing against the stocks, blatantly fake news reports, and even paying individuals to spread lies about the stocks in public forums supporting the stock.

The SEC and DCC have passed multiple new regulations in the last few months that will prevent this situation from ever happending again, and once the price breaks through a point where the firms are no longer able to cover the FTDs and they default, the DCC computers will take over, liquidate their assets, and then begin covering the stocks in an automated buy process that will pay whatever price they're being sold at. mid-high 6 figure per share prices are possible because there is over 3 times the amount of legit shares that have been shorted, and every single share will have to be bought back to cover the shorts. This will bankrupt citadel. The CEO has been funneling billions into a Cayman Islands account and internationally traveling for no apparent reason for the last several weeks. The CFO resigned and took a position somehwere else. Citadel is funneling cash into offshore accounts. They are preparing to cut and run once the scales tips.

Fidelity has $1.4 Billion invested in AMC long positions, as do some other large firms that weren't involved in the shorting. They are betting against citadel hard. This stock will be a massive wealth transfer for those who are patient enough to hold out for the big money. This stock is not about fundamentals and it's not a normal investment. Wallstreet got caught with their hands in the cookie jar and GME & AMC are judgement day.
 

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Discussion Starter · #4 ·
The intent of the post was not to scare anyone out of the markets. Only to inform and raise awareness.

Indeed, if you recognize the market is rigged then you know where to place your money, with those who have rigged it.

But a fundamental sense of justice dictates indignation with the realization that those who are intelligent enough to make profitable trades and investments are unable to succeed in a corrupt and rigged marketplace, if these trades and investments are counter to the established corruption.

You certainly can make money and become a millionaire when you play the game as rigged. But is not profit from the corruption of markets a degree of complicity? But who cares so long as we profit? Until the corruption has targeted your portfolio. At some point your bags of money will be too enticing for the corrupters to resist.
 

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Discussion Starter · #5 ·
Wall Street’s Naked Swindle

A scheme to flood the market with counterfeit stocks helped kill Bear Stearns and Lehman Brothers — and the feds have yet to bust the culprits

 

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Look out for the new thing: SPACs Special Purpose funds designed to collect and pool small investor money to buy a worthless company (or idea) that is too weak to issue their own IPO.
 

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Look out for the new thing: SPACs Special Purpose funds designed to collect and pool small investor money to buy a worthless company (or idea) that is too weak to issue their own IPO.
Yes, ever since these first showed up I've been waiting for the inevitable, major scandal involving these. Well, and kicking myself for not launching one (because why not?) Just not my cuppa.

As for the meme stocks and such, unless you are a professional trader (meaning you have like 8 screens in front of you and a trash can overflowing with Mountain Dew empties), by the time you hear about it you are already a bag holder.

Me, I'm a numbers guy, but because I don't have time to devote to pro-level research and (more importantly) networking, I just value invest and dollar-cost average. I started in college. I was lucky enough to start with $8,000 on my 18th birthday (I had a bond from my granddad which matured, and with a full ride scholarship I didn't need it for college), and it's come a long, long way in thirty-something years.

I probably should have done more with real estate (I got bitten hard by real estate in Japan in the early 90s, and have steered clear since), and I missed a big opportunity in crypto (I was about to buy $100k of BTC at $100, but chickened out... that would be $50 million now), but on the whole, gettin' rich slow is fine by me.

DH
 

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Beat my rolling 12 months by more than 10%. I was down 4% last month alone (September). Annually it has been outperforming (investment gains) more than I put into it with new contributions each year. I guess that is how it goes in a bull market.

We'll see how it goes once the government raises corporate taxes and slows down asset purchases and raises interest rates.
 

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I retired 15 years ago. I have more money today than when I retired from Wall Street.

You guys are not doing a good job managing your money. This is a chart of the market for the last 10 Years. It was a once of a lifetime period of wealth creation:

Slope Plot Font Rectangle Parallel
 
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I never buy options which is a zero net gain. I buy and hold stocks with a mixture of safe bonds for a net long term gain.
It's a simple plan.

My worst customers were those that divorced their first wife (giving her 50%) and then repeating that again. They are still working when most of us are relaxing on vacations. ;) I got the ex-wife as a customer and dropped the dude.

The Fed has said and said that rates will remain low. Don't fight the Fed.
 

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Who would buy stocks at high prices, driving them even higher? Oh, the companies themselves:

And another $Trillion during pandemic times:
 

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Stock buy backs are another way of returning wealth to shareholders. Remember, the shares were sold to raise financing. If the company has capital, and no great new expansion for which to deploy it, the company might issue a dividend or do a share buy back. The whole reason a company exists is to maximize value for shareholders.
 

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Yes, that's certainly the theory. But as long as C level decision makers benefit from higher stock prices then money will be found (or borrowed) to buy-back the company stock. The buy backs add zero to the company's ability to make profits. Stock value / company value is based on expected future profits. Well, in the old days anyway !

Look at the crazy stock price to future profit projection ratios. Stock prices will revert to the mean. But no one knows when.
 

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Buybacks are good if they’re from company profits. If they’re funded from something like an economic recovery package or incentive program that was intended to generate jobs instead, then that’s just reappropriation.

There were a number of companies that realized savings when most of the world went to work from home. Moving that expense off the books and into a stock buyback is good for shareholders and retirement accounts.
 

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