[Carry_Okie]

When investors sell stock, only those who get out first will get what the stock is worth at its height. Wnen the value collapses, those who weren't ahead of the game get a lot less, or nothing.

Um, if I sell a stock, whether I lost money or not, I still have the cash value of the sale even if it is 30% less than what I paid. That's cash that has to go somewhere.

Got it now?

[woodbutcher1963]

http://finance.yahoo.com/echarts?s=000001.SS+Interactive#{”allowChartStacking”:true}

Fact #1
Year to date the Shanghai composite is still UP!
12/31/14 $3234
7/27/145 $3725

Fact #2
The high for the year was 5166. This was a 60% INCREASE year to date.

Fact #3
The composite was UP over 100% since last October.

Fact #4
This is not the first time the Shanghai composite has had such a huge increase followed by a huge correction. Extend above chart out to 5 years or more.

[woodbutcher1963]

http://finance.yahoo.com/echarts?s=000001.SS+Interactive#{”range”:”10y”,”allowChartStacking”:true}

Sorry, Fact #4 I meant the TEN year chart. The increase and correction from 2006 to 2008 makes the current market look like a small blip on the chart in comparison.

[grania]

Why the attitude?

The numbers of people who sell the stock early and get a lot of cash are quite small and more often than not well connected. It's sitting somewhere or buying out companies or being used for bonuses etc. With individual investors it might be used for long-term repairs and purchases. There's no reason to put it in banks with near 0% interest. Unless you have illegal insider information, putting it in the stock market is risky.

I hypothesize from discussion threads on FR and some other stuff I've read that a whole lot of people have an increased stash hidden somewhere. The can't meet the demand sale of Silver Eagles is one indicator that might be the case.