r/stocks • u/2PhotoKaz • 1d ago
Broad market news Market getting smashed, where is cash going?
Clearly a massive sell off is happening, are traders (big and small) just sitting on cash once they sell? Gold, the bastion of safe heavens, is also getting hit.
Bonds? Simple interest? Are any sectors up in this mess?
165
u/Herdnerfer 1d ago
Mayo jar buried in the backyard
21
u/donut_fuckerr719 1d ago
The budget is too tight since I need to get a bedpost repaired
→ More replies (1)16
9
2
4
u/johnsonfromsconsin 1d ago
Dukes or Hellmans jar?
→ More replies (1)6
u/dubyajaybent 1d ago
Mr. Fancy Name Brand Mayo over here.
2
u/EstablishmentFull797 22h ago
You guys are buying your mayo jars?
I only fought a raccoon for one in the dumpster behind the Wendys
2
150
u/Minute-Plantain 1d ago
Cash is going back into money market accounts. That's where my money went two months ago when Bozo announced the first tariff.
11
7
→ More replies (7)8
93
u/DeadArtistsCantPaint 1d ago
Time to get back into Tulips?
18
u/dark_bravery 1d ago
i'm more of a gourd man myself.
→ More replies (1)3
u/ParentalAdvis0ry 1d ago
Do i dare ask why?
6
u/KeyOne9606 1d ago
It’s a funny reference to inflation that happened way back when
→ More replies (1)5
u/ham_sandwedge 1d ago
Tulips are so 17th century. All the whippersnappers are doing these new fangled bitcoins now
→ More replies (1)→ More replies (1)2
u/allaboutthewah 1d ago
How'd that work out the last time?
12
41
u/8uScorpio 1d ago
In the strippers knickers 🎉
5
u/Minute-Plantain 1d ago
The lacy stuff won't hold it all together. They've had to upgrade to Hanes.
3
u/stumanchu3 21h ago
Love me some Beefy T’s.
2
u/Minute-Plantain 20h ago
Pretty soon the strippers are going to need pockets to hold all the remnants of formerly liquidated portfolios. It's just going to be lovely ladies doing a brass monkey drop on a stripper pole while wearing cargo pants stuffed with cash.
→ More replies (1)3
33
u/DrMonkeyLove 1d ago
I guess I'll just pay off my car loans. That will be at least a 2% return on investment...
→ More replies (3)12
14
u/Into-Imagination 1d ago
Me personally?
My cash is going to my mortgage. Guaranteed return paying it down, and at least I’ll own the damn house I’m in, even if my retirement portfolio hits zero.
→ More replies (1)5
11
u/MyNameIsRay 1d ago
Bonds and cds.
If you're not in a position to game the volatility, might as well collect a steady 4-5%
→ More replies (2)
103
u/forjeeves 1d ago
You miss Biden yet?
28
u/tabrizzi 1d ago
Relax. He's crashing the market on purpose. /s
17
u/deanusMachinus 1d ago
First time I’ve seen an /s that was actually needed. I could definitely see people believing this
4
23
u/Bustock 1d ago
Biden did this!
-FOX News7
u/Dont_Touch_Me_There9 1d ago
Why would Hunter Biden's junk do this to America?!?😤
→ More replies (1)→ More replies (1)7
58
u/EventHorizonbyGA 1d ago
The money isn't going anywhere. It is just evaporating.
If you have 10 shares and one sells for $10 the total market cap is temporarily at $100. As soon as another share sells for $1, $90 did not go anywhere. It never existed.
Money only exists when you sell.
18
u/raybanshee 1d ago
Every sale requires a buyer, so who is buying to facilitate the crash?
18
8
u/EventHorizonbyGA 1d ago
Hedge funds were selling yesterday and retail was buying.
Algorithms control price discovery in markets like this and they are always biased bearish. When bid pressure/buying pressure decreases they widen the spread and move the bid down.
4
→ More replies (4)5
u/Magus-of-the-Moon 1d ago
→ More replies (1)7
u/raybanshee 1d ago
The markets lost over 9 trillion, so retail is only a drop on the bucket.
→ More replies (6)4
u/swsko 1d ago
i think he meant where the money being pulled out from selling is rotating to..yes valuation does not equal money until you sell or buy
→ More replies (2)→ More replies (2)5
u/FireHamilton 1d ago
It's funny to think of it like that but totally correct. It's all a fugazi a fugazi, but you and me are taking home cold hard cash via commission motherf*cker!
51
u/istockusername 1d ago
Bitcoin and GameStop are up
I let you draw the conclusion from that
29
u/Joeyfingis 1d ago
And isn't GameStop buying Bitcoin now?
17
u/fuji_ju 1d ago
Yes, MSTR is up today, as well.
2
u/VladStopStalking 11h ago
No, GameStop did not buy Bitcoin. They only said that they might do it in the future, but nobody knows when and how much.
24
u/fuji_ju 1d ago
My thoughts on this:
BTC is a global commodity and not a US-based asset. By its design, it cannot be politically controlled by Trump, and cannot be tariffed. Unlike bonds, it cannot be defaulted on as it is not directly impacted by the Fed and Treasury department policies. Unlike Gold, it cannot be physically confiscated nor is there uncertainty on the available reserves and supplies (public ledger). The finite supply and telegraphed inflation rate on it also protect it from dilution.
As such, it's not half bad as a safety flight asset class. Note that I only talk about BTC. Everything else could go to zero and I wouldn't be surprised.
10
u/draculabakula 1d ago
It can't be politically controlled but it can certainly be politically influenced to a point where it will lose most of its current value.
Trump isn't going to do it but there but certainly be heavy taxes put on any crypto exchange and the goverment could certainly shut down all the current legally recognized crypto platform.
There isn't really any indication that crypto is going to have any utility beyond the niche legitimate uses it currently has so it's only value is in it continuing to being easily tradeable.
3
u/fuji_ju 1d ago
Yeah but he could also easily nuke the dollar and the stock market and default on treasury bonds... It's about risk assessment and management.
3
u/draculabakula 1d ago
Yeah but he could also easily nuke the dollar and the stock market
Yep, half the country fucked around and found out that the president certainly can nuke the stock market
→ More replies (2)5
u/legible_print 1d ago
Trump could totally announce more aggressive crypto taxation/exchange regulation. After his crypto scheme, I honestly don't trust him not to screw it up.
→ More replies (1)→ More replies (1)2
9
u/FistEnergy 1d ago
I've went heavy into SGOV since January. Now it's time to slowly buy back in at a big discount.
40
u/Flimsy_Advantage_531 1d ago
Kiss your retirement goodbye.Trump is the reason why.You'll work till you die.
→ More replies (2)8
u/PromotionHuman5519 1d ago
Jokes on you I was going to work until I die no matter what because I’m a big nerd and like my job
13
u/Doin_the_Bulldance 1d ago
Jokes on you nerdy jobs are no longer needed. Back to the mines you go.
4
5
15
13
4
4
u/CnslrNachos 1d ago
Institutional investors went net short like two months ago. Retail is still buying dip (at least through yesterday). Gold fell over past two, but mostly because it was up so much in advance. US treasuries is where most of it went, so far.
20
u/Fearless_Swimmer3332 1d ago
Gme up 10% while the market crashes
They hate us cuss they aint us
21
u/BrokeAdjunct 1d ago
I watched that one green ticker today and I was like you know what, good for them.
12
→ More replies (6)10
6
u/Dont_Touch_Me_There9 1d ago
Pulled every dime out of my taxable brokerage account two months ago after some handsome gains over the last few years.
It now sits in a money market account earning about $1000/month. Been putting every ounce of energy into increasing my earning potential over the last couple years as well.
I sleep so much better not having my hard earned money subjected to the economic destroyer in chief.
3
3
3
3
u/Captain_of_Gravyboat 1d ago
I'm going to pay off my house and rebuild in a HYSA until we get a new president and restore some credibility in the world.
5
2
2
2
2
u/SillyWoodpecker6508 1d ago
No I just keep buying.
This is the opportunity I have been waiting for since '08
→ More replies (3)
2
2
u/discgman 1d ago
Its going into mattresses after Orange Cheeto fires everyone from the FDIC and closes it. Bring back the Great Depression.
2
u/mericafuckyea 1d ago
Savings account, money market account right now. Just sitting on cash you don’t need to be invested 100% of the time.
2
u/howdoesthisworkfuck 1d ago
I've had my money in revolving CDs since Nov. as the writing was on the wall from the start
2
4
u/ThePartyLeader 1d ago
I was sitting mostly on cash and inflation protected bonds since January. I assume others are starting to do the same.
I am hoping its not going to be an utter disaster as I started buying back in a couple weeks ago and made another buy today. (didnt sell bonds yet though inflation is coming)
4
u/allaboutthatbeta 1d ago
take a look at the crypto market, it's holding very strong these past couple days which means that is more likely the place where money is going
→ More replies (2)
3
u/ThrOE_away_42069 1d ago
Ethereum and Bitcoin are up.
I cashed out the monday after Buffet did and have been daytrading leveraged ETFs for BTC and ETH in both directions. Life is good.
3
u/mrestiaux 1d ago
I see no smashing going on over in the BTC market. Sure we’re down from $105k, but it’s green while the stock market’s bleed continues.
3
u/PraiseBogle 1d ago
Crypto isnt staying steady because it has good fundamentals.
There isnt a flight from crypto because trump cant control it.
2
u/mrestiaux 1d ago
I’m not talking about crypto. I’m talking about Bitcoin. The two are very different.
Bitcoin is staying steady because of its fundamentals. Trump can’t control it. That’s the beauty of it.
2
u/Potato2266 1d ago
My money is on Europe, Latin America and Asia. I speculate that they will work out free trade deals to soften the economic blow of tariffs, while excluding the US from it. Tariffs are not new. There are history lessons that we can reference. This will not go well.
→ More replies (1)
2
1
1
1
1
1
u/vgbnd_trvlr 1d ago
As stock peices drop, valuations drop, the net asset of the rich n corps drop, the money they get by selling is going to cover for their own life style induced debt or to cover the margin calls happening on their over leveraged accounts. Some will be sitting on the cash as well
1
1
1
1
1
u/Dry-Cause-5608 1d ago
Anything that has tangible value, so yes gold, certainly not cash the value of the dollar is falling off a cliff
→ More replies (1)
1
1
1
u/Neemzeh 1d ago
pls tell me when u figure it out lol. i sold all my puts today for over a quarter mil USD. i need to know where to park my shit
2
u/2PhotoKaz 1d ago
People say don't try to time the market, so right now I'm just sitting on what I have. I'm not getting killed as much as the S&P500 because I have some low vol stocks, bonds, and gold stocks in my portfolio. Still stings.
→ More replies (2)
1
1
u/BonnieMaxwell26 1d ago
begs the question is any of it real
3
u/2PhotoKaz 1d ago
The cause is artificial, and can be reversed at any time. Recovery could be fast like the pandemic, or could drag out a decade. Right now, I don't know which way it's going to go.
1
u/LetterIcy9044 1d ago
Had $100k to invest today, bought $10k VTSAX, $80k VUSXX, $6k VBTLX and $6k NVDA. Was going buy $4k VTIAX but I think this lags the US market. (Overall $20k 70-30 in boglehead method and the rest in VUSXX.
1
u/sociallyawkwaad 1d ago
I was wondering this too when I saw that gold was also way down. Bonds maybe? Under the mattress? Ammunition? Lol
1
u/Consistent_Panda5891 1d ago
Cash is going into market but as shorts instead of long. That's why it is tanking. After all classic says "stock goes up" but this is only because you want to sell it with more price than you bought. But this is simply because there are more buyers than sellers. Now is the opposite. When shorting you are selling an asset and you have to buy lower to make profit. And what when you doesn't? Simply double down on sell, tanking it further!
1
1
u/drjd2020 1d ago
VZ went up yesterday. I think people are looking at essential services and businesses that don't heavily rely on imports, that could be partially immune from recession and have good fundamentals. I guess it's back to value investing...
1
1
u/onepanto 1d ago
In major sell-offs like this, EVERYTHING gets sold because people fear what might happen next and want to raise cash.
1
u/HelpfulDescription12 1d ago
401k is 100% bond funds, my IRA is all SGOV, my brokerage account is all in a moneymarket fund.
1
u/1PrestigeWorldwide11 1d ago
Cash is not going anywhere, prices of exchange are simply being rerated.
1
1
1
1
1
1
1
u/Ashamed-Agency-817 1d ago
The money doesn't go anywhere when the market crashes. It mostly vanishes.
→ More replies (2)
1
u/caca-casa 1d ago
Overseas, bonds (I’m split between FIPDX & FXNAX), and frankly for me… cash (a HYSA).
This is one of those rare times in history where hoarding a pile of cash is a solid stance. You’re liquid and rates remain high. I, for one, will be watching to see how long this goes on and whether the ripples will end up affecting the housing market to my fucked over millennial benefit. There is just as good a chance it won’t.
Stagflation is a nasty SOB.
1
1
1
1
1
1
u/FuklzTheDrnkClwn 1d ago
Paying off debt/high yield sav acct. I’m not even contributing to 401k for a bit. Fuuuuck this.
1
1
1
1
1
u/MaxwellSmart07 1d ago
I’m officially too old for this shit. MAAA. Market Angst. Anxiety. Apprehension.
This is eggzactly why when I retired years ago I promised myself not to rely on the market for wealth accumulation or income in retirement. Alternative investments/private equity. Stocks were 7% of my assets, now after wholesale selling last month it’s 1%.
1
1
1
u/vaquan-nas 1d ago
It just disappears, the "money" supply is reduced.. very same as you burn physical money..
1
1
u/vinyl1earthlink 1d ago
Every share that is sold, someone buys it. Sure, the seller receives the cash, but the buyer spends it. So the net amount of cash remains the same. The seller might buy bonds or bitcoin, but the buyer could have done that too.
1
1
u/NivvyMiz 23h ago
My friend suggested we start smuggling Magic Cards into Canada and I'm inclined to invest.
176
u/KissmySPAC 1d ago
Debt and bonds.