Trading the stockmarket (NO Referrals)

Trusty said:
They're different things
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They have different technical definitions, but the debasement of the currency results in price inflation, so the only thing that matters for your hurdle rate is inflation, so if price inflation is 11% then your hurdle rate is 11%. You can't add debasement rate to inflation rate to get a hurdle rate, the hurdle rate is inflation. That's why investments aim to beat inflation.
 
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radderfire said:
They have different technical definitions, but the debasement of the currency results in price inflation, so the only thing that matters for your hurdle rate is inflation, so if price inflation is 11% then your hurdle rate is 11%. You can't add debasement rate to inflation rate to get a hurdle rate, the hurdle rate is inflation. That's why investments aim to beat inflation.
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No. Asset price inflation (monetary debasement) and high street inflation (consumer prices) are different. Hence high street inflation being 1/2% over the last 15 years and the Nasdaq or housing eclipsing that by a huge margin.

Wage growth - 3%, high street inflation - 3%, asset prices - 9%. You're not getting wealthier. You're ability to buy assets gets away from you. Widening wealth inequality. It's literally the central thesis to the rise of populism and bitcoin.
 
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I messed up one stock, lost a chunk and pulled out.. gained the money back in the last two weeks.. ah well! live and learn :)

created a long-term pie with some higher risk stocks and some more stable/strong companies in it and will just throw money at that once a month, see how it goes. But d-wave is flying, 30% up, rocket lab is flying.. and obviously ALTR which I'm hoping makes me rich enough to pay off my mortgage in 5 years ;) onecandream.
 
grudas said:
I messed up one stock, lost a chunk and pulled out.. gained the money back in the last two weeks.. ah well! live and learn :)

created a long-term pie with some higher risk stocks and some more stable/strong companies in it and will just throw money at that once a month, see how it goes. But d-wave is flying, 30% up, rocket lab is flying.. and obviously ALTR which I'm hoping makes me rich enough to pay off my mortgage in 5 years ;) onecandream.
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D Wave has been the best performer for me, and Rocket Labs is a close second.
 
Trusty said:
No. Asset price inflation (monetary debasement) and high street inflation (consumer prices) are different. Hence high street inflation being 1/2% over the last 15 years and the Nasdaq or housing eclipsing that by a huge margin.
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Trusty said:
Not really though tbh. Debasement at 8% a year, inflation at 3%. Hurdle rate is 11% just to stay even
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Sorry Trusty, I don't know where you are getting this stuff from, but what I'm saying is your:

"Debasement at 8% a year, inflation at 3%. Hurdle rate is 11%"

Is invalid. You originally defined debasement as currency debasement, and that's not the same thing as asset inflation.

Currency debasement causes both asset inflation and consumer price inflation.

Maybe you meant:

Asset inflation 8% a year, consumer inflation at 3%. Hurdle rate is 11%

which makes more sense.

Regardless, I think an S&P 500 tracker is a good investment for a newbie.
 
Diddums said:
I just lump it all on the S&P 500 and forget about it. I then also have a dabbling pot where I basically gamble. I've currently got it all on GME which has tanked over 15% since I bought in, I'm probably the only loser in this thread.
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That’s what I want to do really, just put a lump sum in and forget about for a while and check in now and again.
 
beachBOYken said:
That’s what I want to do really, just put a lump sum in and forget about for a while and check in now and again.
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If it's a lot of money then I would be inclined to split it up into 2 or 3 and then do a portion each month. Then forget about it. What I'm saying is feed it in initially. Alternatively be OK with having a big 10%+ correction which could happen if you do it in one.
 
radderfire said:
Sorry Trusty, I don't know where you are getting this stuff from, but what I'm saying is your:

"Debasement at 8% a year, inflation at 3%. Hurdle rate is 11%"

Is invalid. You originally defined debasement as currency debasement, and that's not the same thing as asset inflation.

Currency debasement causes both asset inflation and consumer price inflation.

Maybe you meant:

Asset inflation 8% a year, consumer inflation at 3%. Hurdle rate is 11%

which makes more sense.

Regardless, I think an S&P 500 tracker is a good investment for a newbie.
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What has inflation averaged over the last 15 years bar covid? 2%? 3%?

Official Inflation figures do not capture asset price inflation.

Currency debasement, monetary debasement, asset price inflation...which ever you wanna call it. That's the asset part. Inflation is inflation, it's the consumer price level bit.

So 11% just to break even, give or take.
 
Trusty said:
What has inflation averaged over the last 15 years bar covid? 2%? 3%?

Official Inflation figures do not capture asset price inflation.

Currency debasement, monetary debasement, asset price inflation...which ever you wanna call it. That's the asset part. Inflation is inflation, it's the consumer price level bit.

So 11% just to break even, give or take.
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The inflation figure is massively fudged. It's higher than they claim.

For some reason they are allowed to pick what items to measure against. Look at the items, it's a joke.
 
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Nasher said:
The inflation figure is massively fudged. It's higher than they claim.

For some reason they are allowed to pick what items to measure against. Look at the items, it's a joke.
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Don't disagree, the basket has changed massively over the years.
 
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