Except stock price isnt intrinsically related to profits at all. So Amazon is $1100. Great. Does that entitle you to x% of the profits? nope. We just believe th

Except stock price isnt intrinsically related to profits at all. So Amazon is $1100. Great. Does that entitle you to x% of the profits? nope. We just believe that stock prices should reflect profits but its just a false fabrication. Price simply reflects demand from stock buyers. as a thought experiment, Lets suppose that everyone on earth is forced to invest 10 percent of their salary in their 401k and it has to be in equities. And they cant take it out until they are 90 years old. Stock prices would probably inflate 5-10 times current prices. Amazon would be 10 times "overvalued" in relation to profits. Would you not buy becauss of this? Of course not, Because people would continually invest in stocks and much fewer people are cashing out.