@welshbloke,Wouldn't people have factored in the price drop over the lifetime of the console? If not...PS3 and Wii will EXPLODE in value when they drop their price?
It is a little surprising though that despite nothing but positive news coming from the MS camp the stock has hardly moved at all in fact it still even manages to drop in value.
Signs of Improved sales in Japan Price cuts announced globally Holiday Bundles included at the new discounted price Huge advertising campaign Sony apparently sticking to its guns on price New Avatar system GOW2, Fable 2 games announcements in general i.e. Tekken, FF and so on.
The way I see it, IF we remove / change time trust, I did meant that it is easier to keep the price at a level we deem appropriate, BUT it also mean that the potential for profit from shorting is much lesser.
For example, without time trust, Wii Fit's price might not reach 17 Million (highest I remember), and that means you would not ever get opportunity to short it at that price point.
I believe the art is finding the right stock at the right time at the right price. I tend to make most of my money from shorting stock (future mostly, but also some GLS), so I don't see any problem with current setup. If I have a choice, I would rather short something at higher price point, and time trust is helping me get it (short at higher price).
@zeromous,yea i wouldnt worry about that sort of stuff as we wont be getting into these stocks for a long time as there life cycle hasnt been completed, also whats the piont? even if you try to make money by investing in console stocks youll either push it too high or push it too low. For example its at 7000 now you buy and send it very quickly up to 7500 or 8000 people will immediatly see it as a short oppertunity and sell you loose a fortune same if you short it.
but the person/people who sent this high up at 7000 will keep it up there and if you short you will start a bidding war. happens with high stocks like SuperSmashBrothersBrawl+SuperMarioGalaxy a good while back me and my bro were trying to get it to fall but stubborn fans kept pushing it up. This is a bad downside to TSE.
Shouldn't max holdings be a % of available stocks (ie volume), not % of net worth? Ie None of us can really OWN a "company" or "stock", but what if we could theoretically hold 35% of our net-worth, but 50-99.9% of a particular stock, at least enough to be the controlling interest, that stock is effectively dead- and definitely not an accurate valuation in most cases.
This isn't monopoly :) I apologize if I have missed something.
Anyway thanks for the explanation. Perhaps my observation doesn't have anything to due with Time Trusts, but I think the end game is the same.
I forgot to add, i think the time trust needs to be scrapped or at least altered so there's a sort of short time trust to balance it out, because at the moment all it does is to inflate stocks to beyond reasonable levels and skew our predictions. On a popular stock, i.e. a hyped one that will have several players investing their time trusts in it simply because they think it will be good, requires a large amount of DKP to go against it and just keep it at a reasonable level. We see it on every high profile game due to come out, and most of the rest, and i think its time something is done to stop it.
You can hold up to 35% of your networth in any one stock, so a 1.5million potential holding is nothing. I could sell about 10million's worth of stock and zukaus could sell over a 100million. If data becomes available in the distant future then of course the price will rise. All it is at the moment is one player deciding that 7k is a good price to sell at, whether they are creating a short position or lessening their long.
This is only a ceiling to players who are just investing their time trust in something, 20k a day and it would take a long time to break a million. If another high networth player comes in to take a position then that ceiling wont last long unless it is reinforced by its creator. To impose a limit on system stocks would go against the basic wisdom of the crowd prinicipals TSE is based on.
Just because a player is imposing a small ceiling, there is no need to worry.
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About time the 360 GLS came down some.