Maybe their sales of stock caused it, in part...
They sold a few billion once, while the Fed has begun selling billions in bonds every day. It's not even close, which you can see from matching market drops to Fed news. In response to inflation, the Fed has raised the Fed funds rate, which went through the bond market and reached mortgages. Musk and Bezos are mice running around, but don't ignore the elephant in the room: the Federal Reserve.
Musk tweeted that Doge was "pretty cool" and that crypto absolutely up over the next few days. Don't underestimate how what these guys say/do can change market sentiment more than the dollar value of their transactions.
What in earth does that have to do with how we should invest in the markets??
I'm not seeing the connection.
I'm just saying that some people (not necessarily "we") take cues from what Musk & Bezos do in the market as predictions of things to come. If the sheeple see these guys taking huge chunks out of the market, it may, in part help their moves to become self fulfilling prophecies about what the market will do as a whole. Just like Musk, on a micro scale, can tweet about some crypto being a good investment and lo and behold it becomes a good investment the following days.
I'm still not getting how this relates to us as investors.
By the time we can even react to what's publicly known about these peoples moves, the markets will have already reacted and baked in that info.
Sure, you might catch an upswing or a downswing before it's done, but do you think someone can really predictably react to publicly known behaviours and statements of individuals and then figure out how to capitalize on them *consistently* in a way that would outperform buy and hold?
I'm not being facetious, I'm legitimately asking if you think there's a way to do so?
Here's another example. I have access, thanks to my spouse, to a lot of confidential information about the governments energy strategy. This isn't even public information, so I'm not competing with everyone on the planet in real time.
Still, if I wanted to exploit this info, it would be incredibly difficult because the industries involved already bake a lot of this info into their prices, and I'm nowhere near enough of an expert to understand how certain initiatives and announcements might affect the markets with enough precision to be able to effectively time anything.
My point is, even if you have really good information, it's not necessarily enough to outmaneuver the market.
For every "I should have bought Doge" there's a "well that didn't turn out how I expected." All based on salient information.
I'm in no way arguing that the behaviours of billionaires don't move markets, they absolutely do. But often even those billionaires themselves aren't amazing at capturing those moves in terms of profiting off of them.
So I still don't understand how I'm supposed to translate the fact that Besos and Musk impact the market into a predictable investment strategy that nets me more than index funds over time.
People who do this crap professionally have a hard time doing that, and often with much better info than we have access to.
