• LAVA Moderator: streaM Freak

the market: stocks, bonds, options, whatever

So is this finally the start of the correction/crash/downturn of the AI / Tech companies?

Some financial youtube content creators have been calling it for a long time, but things have kept rocketing upwards despite that. But now real drops are happening, and the whole thing seems ready to fall over and tumble into free fall.

I don't really know what Options are tbh, they sound too advanced for my level, and one thing I know and have learned is never put money into things you don't understand.

@thujone Do you have any suggestions as to good places to learn about this?

Anyway, I'll be sticking to index funds and ETFs for now at least, and following the advice of continuing to invest during any potential downturns. I understand the relatively simple and straightforward principles of ETFs and Index Funds, and know that in the fullness of time, that continuing to invest regularly during downturns is where and how the biggest gains can be made.

My time horizon is like 7 years until my desired retirement date, and 12 years until my state pension kicks in. I wont be cashing everything in as soon as I retire so my overall time horizon is still 12 years, or more, depending on multiple unknown and unpredictable variables. This should be long enough to ride out, and gain from, any potential downturn, and then wait for the recovery. Historically speaking it's rare for any crashes to last longer than that.

Although quite disgustingly the state pension age could be raised even further for my generation, with very little notice provided. It's already gone from 65, to 66, to 67 for my generation, and could now potentially go up to just short of 68 for me personally, based on my birth date. It's so bad, especially considering that average healthy life expectancy in the UK and USA is very early 60s. Many people are developing serious health issues at that point that have a massive impact on their quality of life.
 
Last edited:
I don't really know what Options are tbh, they sound too advanced for my level, and one thing I know and have learned is never put money into things you don't understand.

@thujone Do you have any suggestions as to good places to learn about this?

Investopedia is usually good for beginner knowledge, though AI can be good if you know the question.

The fundamentals of options is simple, you can buy (long) or sell (short) a contract on a ticket at a certain price (strike). A call contract means if the underlying goes above the strike price, that contract expires with value. A put contract means the opposite.

What complicates things is the greeks (variables called delta, vega, theta, etc) because those variables affect the price of a contract. It means that extrapolate the outcome of an options contract is not as straightforward as buying a stock/ETF and thinking OK I want to see it when the price goes up $5 and I expect this much profit.

Lately I've been long on puts on tech. There's a possibility of a steeper decline short-term, because of the uncertainty of midterm elections, but they're approaching oversold levels and that could be an ideal point to go long (calls).

The midterms are a risk either way. If Democrats take control of Congress; a distinct possibility, then it's the beginning of the end for Trump. OTOH, the Democrats are still clinging to ideological doctrine that was widely rejected. Democrats may well win this battle and end up losing the war.

Either way, we could end up with a repeat of the first Trump administration, where political obstruction complicated policy direction, and that could create headwinds for the tech industry.
 
on a slightly longer timeframe though, i think that democracy is finished and the middle class is finished and tech investors will be the few that survive the coming dark age
 
buying dips is risky these days, as the dips keep dipping

the mood among retail traders is grim, a lot of them have taken fatal losses

where has all the capital gone?
 
Well yeah I mean there's a reason things have to be adjusted for inflation every year and why the dollar has its own index. Its been that way for a while now
 
Top