Hedge funding in stock market

Eeveryone living in America today has a higher standard of living than the President and his family had 90 years ago. Authored by Michael Snyder via The Economic Colapse blog. Have you ever wondered how tech companies that have been losing hundreds of millions of dollars year after year can somehow be worth billions of dollars according to the stock market? This week, the Dow is flirting with 21, and the Nasdaq crossed the 6, threshold for the first time ever.

Anyone that cannot see that we are in the midst of an absolutely insane stock market bubble simply does not understand economics. Every valuation indicator that you can possibly point to says that we are in a bubble of epic proportions, and history teaches us that all bubbles inevitably come to an end at some point. Earlier today, I came across an article by Graham Summers in which he persuasively argued that the price to sales ratio indicates that stock prices are far more inflated than they were just prior to the great stock market crash of ….

Sales cannot be gimmicked. And if a company is caught messing around with its sales numbers, someone is going to jail. For this reason, Price to Sales is perhaps the single most objective and clear means of measuring stock valuations.

Large tech companies such as Twitter certainly have lots of revenue coming in, but many of them are deeply unprofitable. In fact, Twitter has never made a yearly profit, and over the past decade it has actually lost more than 2 billion dollars. But despite all of that, investors absolutely love Twitter stock. As I write this article, Twitter has a market cap of How can a company that has never made a single penny be worth more than 11 billion dollars? Twitter is never going to be more popular than it is now.

ABC News says that Twitter actually just reported a decline in revenue for the most recent quarter…. Twitter has never turned a profit, and for the first time since going public init reported a decline in revenue from the previous year. The only reason why financial black holes such as Twitter can continue to exist is because investors have been willing to pour endless amounts of money into them, but now that bubble is starting to burst.

One of the examples that he cited in his article was a company called Clinkle…. Given that investing in an early stage company is high-risk, investors might provide a few hundred thousand dollars in funding, at most.

There were even photos that surfaced of the year old CEO literally setting bricks of cash on fire. Most of you may have never even heard of Clinkle, but I bet that you have definitely heard of Netflix. Netflix has revolutionized how movies are delivered to our homes, and that revolution helped drive movie rental stores to the brink of extinction.

There is just one huge problem. It turns out that Netflix is losing hundreds of millions of dollars …. But even though Netflix is losing money at a pace that is exceedingly difficult to imagine, investors absolutely love the company. I just checked, and at this moment Netflix has a market cap of Companies that are losing hundreds of millions of dollars a year at the peak of their popularity should not be worth billions of dollars.

Nobody can possibly argue that these enormously inflated stock prices are sustainable. Just like with every other stock market bubble in our history, this one is going to burst too, and I have been warning about this for quite a long time. But for the moment, the naysayers are having their time to shine. Despite the fact that U. Perhaps they can all put their money where their mouth is by pouring all of their savings into Twitter, Netflix and other tech company stocks.

I reckon Netflix is massively overvalued, but they are burning through cash to create content. If that content has value, the cash flows will come later. That approach might have been viable 10 years ago but now the costs to produce content are plummeting creating gluts of programming.

Snyder is a fundamentalist Christian who has been running his "Collapse" website 10 years now. How long can the sky fall Michael? Why does ZH have him on here so much? No numbered list this time? This is his new blog. I'm surprised he didn't plug this one, too. What a load of crap! He's not really a fundamentalist. He's a j00 worshiping zio-dispensationalist, which is way worse. March was peak stock market absurdity.

But QE had to buy something. Without QE, CB's just buy stocks directly. Fed pays out cash in exchange for worthless securities to liquify banking system. How complicated it that?

People keep thinking they have finished just when they get to the point where they should be starting. Yes, we know the numbers do not add up. Depending on who you talk to, the numbers have not added up for at least two decades. If the numbers do not add up then that means you do NOT have all the information.

Using DC circuit theory for AC circuits. Using simple circuit theory for feedback circuits. The patsy at the poker table. Assuming that just because you have to pay the money back then everyone else also has to pay the money back.

These days I believe the aristocracy never died. They just hid behind a veil labelled "Capitalist" until they started losing. Now they have to invent "reasons" why The modern world probably has more in common with this than anyone cares to admit: If you are part of the nobility then you line up, kiss the right As, put in a request for funds and away you go.

One of your minions then writes a business plan to explain to the rest of the world why it was a good idea. These days even the minions can't be bothered being convincing but no-one is calling them out on it so who cares?

I too could build some awesome companies if I knew I could just keep borrowing money and simply re-assure the bankers that the richer customers will arrive next year. I always thought I would have to make a profit but if not, well that would make life easier now, wouldn't it? But you have to be part of the nobility.

Hedge fund - Wikipedia

Or if the nobility like your idea then they will simply take over your business and let you "run" it. Better than going bankrupt, no? We know the numbers do not add up and have how to make money hauling junk cars added up for a long time. It is time to investigate further and find out what really matters.

How Hedge Funds Impact the Stock Market: Pros, Cons

It's like the pot is on the stove and we are waiting for the water to boil, not realizing that someone snuck some hoses through the back of the pot and is constantly pumping through fresh water from Lake Michigan. We gotta take a better look at what is in front of us.

Now we need to ask, why ? What daytrading university ken calhoun the real reason forthat could not possibly have happened in or ? What we have to ask is, what if we had a situation where the shoe-shine boys were already all-in back in ?

What would cause it to last until ? And then we are back to why ? Why not or ? Of course they didn't. They jsut have bankers, politicians and C-suite executives to shield them from scrutiny.

Funny thing is, all the info you need is out in the open. Take a gander on wiki under pretty much any "house of" and most of them are still around, fortunes intact no matter what system of government is in power.

Hard to say if they are investing or just spending. If they're spending it on hookers and blow, how is that creating content? Forex account mini obvously too young to remember the dot.

ALL those companies said EXACTLY the same thing. When this current bubble bursts, just wait. The quaterly cash infusions will stop as investors get a reality check. Robots are doing what little evil khaazarians cannot.

Hedge Funds Are Bracing for a Market Selloff - Bloomberg

Yes, the money being lost is the money in your bank account purchasing power. It is being devalued or IOW diluted by all the dollars being printed. You could have earned a dollar 50 years ago by producing 1 hour of labor. Now that dollar does not buy for cmc markets stockbroking login one hour of labor today.

It will buy about 5 minutes. That means your hard labor has been devalued and stolen by the bankers and CBs. The only way you would have competed is by being a skillful investor. The problem is if you are a skillful mechanic but a terrible investor, you lose. In contrast, bankers only need to be skillful investors.

You need to do two jobs just to compete with them. They only need to buy houston rodeo cook off tickets one and can spend 8 hours per day doing it. Bankers don't even need to be skillful. They just have to know how the rackets work, and pay off the right politicians. So you cannot directly compare the two era. I think when this one blows it's not only going to be the end of the stock-market and the economy but the end of the civilization as we know it.

Sometimes I think the most amazing thing about the human condition is our boundless ability to rationalize almost any behavior if it suits our immediate needs and desires. Some call it insanity. This is part of our basic nature. The best you can do is recognize it in time and have the guts, stamina, and a good strategy to profit from it.

Two things are infinite: Nassim Taleb covers this in his book "The Black Swan".

Because it is automatic forex review rigged game, and that is what we have here. This article demonstrates that ratios don't matter just like probability doesn't matter when you see someone flip a coin 50 times in a row and come up heads every time. Instead of looking for the rigged coin to come up tails the thing to look for is a person who got ripped off and comes back with a knife to settle up.

Plenty forex qqe ea people and entities getting screwed over in this rigged stock market game, sooner or later one or more of the disgruntled parties are going to come back with asset swap convertible option trade definition knife and then all bets will be off.

Perhaps make sure that the price of what you wanted to sell got higher and what you wanted to buy lower? Is that too much of a simplification?

Wouldn't surprise me a bit. Reading "Flash Boys" my biggest takeaway was hedge funding in stock market these people are big w wetherill park christmas trading hours more clever than Hedge funding in stock market will ever be and they will dream up ways to rip people off that I could scarcely understand 15 minute macd for binary options strategy it is explained to me after the fact much less discover on my own.

I don't really try to figure out where or why the price of gold or the stock market do what they do. In the end it all leads to the same place I think. To borrow a little from Tyler, on a long enough time horizon people who run cons eventually con the wrong person and when that happens the end is quick and violent.

When that happens the con man is wishing to god that it was bivariate european digital put option just the police busting him.

I am looking forward to the day when the market equivalent of Marsellus Wallace goes to work on their asses with a set of pliers and a blow torch. That is going to be a show to watch! I dont get the markets anymore and lost a half mill playing them.

Nothing makes sense and what i believe its being all controlled by? Lots of lies thats for sure. Another day, another peak market insanity article on Zerohedge. We know we know. What's actually happening here is the FED is now deciding what companies it wants to own buying bonds and stocksand which it wants to fail the rest.

We are moving from a Capitalist country to a world where we'll only have the big 'FED Approved' FED partner corporations in charge. Anybody who can't look at the chart and see it's going up is fucking blind? So, am I insane or are you simply blind? Which begs the question, why do you care if it goes higher? The author should research and fact check his story before posting it.

The Clinkle story about the CEO burning real bricks of cash was fake. The only ones who may stop this party are the Russians and the Chinese who, are about to drop the US dollar and go to a gold backed currency. Here's our Cookie Policy. How to report offensive comments. Home Contributors Newsletter Donate More Store ZH-TShirt Glossary Archive Manifesto RSS. Apr 27, 8: Authored by Michael Snyder via The Economic Colapse blog, Have you ever wondered how tech companies that have been losing hundreds of millions of dollars year after year can somehow be worth billions of dollars according to the stock market?

Twitter NASDAQ Market Crash ABC News Twitter. Printer-friendly version Apr 27, 8: Comment viewing options Flat list - collapsed Flat list - expanded Threaded list - collapsed Threaded list - expanded. Date - newest first Date - oldest first.

Select your preferred way to display the comments and click "Save settings" to activate your changes. Negative FCF does not mean losing money. It means spending money. JoeTurner gammab0y Apr 27, 8: Took Red Pill JoeTurner Apr 27, 8: BigFatUglyBubble Took Red Pill Apr 27, 8: He's also a va-jean who blocked me from his comment section for no good reason. JRobby BigFatUglyBubble Apr 27, 8: Finance is complicated Bluto!

PT JRobby Apr 27, Here, I'll try and help, not that I can add much but here goes: Rabbi Chaim Cohen PT Apr 27, PT Rabbi Chaim Cohen Apr 27, Jessica6 PT Apr 27, 1: JRobby gammab0y Apr 27, 9: Anopheles gammab0y Apr 27, 9: Ban KKiller Apr 27, 8: FreeShitter Apr 27, 9: JackT Apr 27, 8: JRobby JackT Apr 27, 8: U4 eee aaa It is being devalued or IOW diluted by all the dollars being printed You could have earned a dollar 50 years ago by producing 1 hour of labor.

Hedge Funds Love These 4 Stocks--Should You? - TheStreet

Valuator Apr 27, 8: We're about to get d, but interest rates and inflation are low, so valuations are high. We will continue to generally rise until the recession. JRobby Valuator Apr 27, 8: Iconoclast Apr 27, 8: As long as the QE money keeps flowing. We still need another fresh high, quite likely at today's close.

General Admission christiangustafson Apr 27, 9: SheepDog-One Apr 27, 8: Azannoth SheepDog-One Apr 27, 9: Colonel Apr 27, 8: Really they fell for that LOL.

Downtoolong Apr 27, 8: Azannoth Downtoolong Apr 27, 9: Nature will correct this mistake sooner or later, we are one major disaster from the Great Reset. Anopheles Downtoolong Apr 27, 9: Lester Burnham Apr 27, 8: Lester Burnham sherlockolms Apr 27, 5: BlueHorseShoeLovesDT Apr 27, 8: Trump's guys soent 5 minutes on a tax plan, what's the problem. GAAP Free Cash Flow? Blankfuck Apr 27, 8: SybilDefense Apr 27, 8: Captain Sensible Apr 27, 8: Have We Just Reached Peak Stock Market Absurdity?

No, that was reached at least a year ago. Now we have reached peak investor insanity! PrivetHedge Apr 27, 9: And no one ever voted for the FED. But they use our wealth to do it. Even if you quote another article in your story, take 2 minutes to check their facts.

Stinkworx Apr 27, 9: Some of the above quotes are some of the most informative I've ever read on this site. That's when everything will go pop in the west. Create new account Request new password. To prevent automated spam submissions leave this field empty.

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Hedge Funds Explained: What They Are and How They Make Money

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