No One Truly "Loses" in the Stock Market

Right, Nvidia's price is reflecting REAL underlying wealth creation. But it's not THE wealth creation itself.

 

Then the shareholders own the underlying wealth creation.

 

Own it but haven't realised it. Liquidity makes the price real. Until it's transacted, it's theoretical.

 

So if i convert all of my free cash to assets like stocks and real estate. All my wealth has now become theoretical?

 

In both cases, you've transferred your wealth into a proxy for value, not value itself. And in real estate it's obviously got use. But on value alone, it's whatever the market prices it at. That value won't be realised until you come to sell.

 

By that you seem to saying cash is wealth but other assets like stocks and real estate are just 'proxy for value' I really have no idea what you are talking about now

 

I mean c'mmon! If you're going to get picky, yes cash is still a proxy but as purchasing power it's instant. So it's fair to call it value.
You're still not realising a bean until you sell your house/stocks/time share whatever

 

You must have majored in Semantics like piezone.

 

Trumpian style debate

 

But unrealised wealth is still wealth in my book, it might not be as liquid as cash but it is still wealth.