Anonymous asked: "us futures just tanked" forgive my ignorance but what does that mean?
Futures (options, derivatives market, etc) are contracts to buy stocks at a specific future time for a specific time. They are sort of like options. Options can also be seen as a type of insurance or a “hedge” on your current holdings since fulfilling options is, well, optional. Futures are not optional, it’s a contract.
The derivatives market is based upon the stock market since they are “bets” based on future prices of stock market (or commodity exchange) assets. But it’s basically a whole different market of it’s own. And it’s HUGE! Because multiple people can make bets at different times on the same shares.
Some say the derivatives market is around $1.2 QUADRILLION dollars, or bigger than the actual economy of the planet. But I don’t know about that. I don’t think anyone knows the real size (and if they do, they’re not telling), but it’s massive because it’s, in theory, limitless since you can bet on both sides into the future are fractionally small intervals of time.
It’s actually really interesting to read about. It’s also a dangerous game. Even when I was trading full time, I never dipped into the derivatives market because it’s high risk.
read more: http://www.investopedia.com/terms/f/futures.asp
Soros, as well as many very smart and very rich investors, thinks that the market is due to take a tumble. He has substantial holdings in put options on the S&P 500, something around $1.3 billion dollars worth.
The Soros position is by far the scariest and at the same time the best news I’ve read on the market in a long while.
The Federal Reserve decides to tapper off of money printing and the stock market takes a dive unlike any we’ve seen in the last year and a half. Still believe that all of these “gains” are real?
Dove into some financials today and I’m officially scared enough to add “large case of water x 2” to the weekly grocery list.
The Dow hits an all-time high? WE’RE ALL RICH! This must be the Jedi mind Meld the President was talking about.