4 ms·
Smart ones profiting off of the masses, like the stock market, or just how the whole world works.
by AFascistWorld 7y ago
Smart ones profiting off of the masses, like the stock market, or just how the whole world works.
- vmurthy 7y agoYou assume that the whole stock market is a zero-sum game which is patently false. Businesses raise money , many if not all use this money to grow their businesses and return money to shareholders via dividends / buyback. Stock appreciation is a result of this activity. FYI , a dollar invested in S&P index in 1926 was worth 5000+ dollars in 2014 (http://skloff.com/growth-of-1-dollar-investment-1926-2014/ http://skloff.com/growth-of-1-dollar-investment-1926-2014/). If this is profiting off the masses, I don’t know what to say :-)
- Gibbon1 7y agoThere is a small army of portfolio managers that under perform index funds year after year. Like almost all of them. And investment banks both selling securities and betting against them at the same time. The non zero sum part is called the real economy. Which itself is under performing the market. Or the current crop of tech companies which exist solely to launder negative interest central bank credit.
- vmurthy 7y agoCan you define current crop? If you think Uber , Lyft etc. you’re right. I’m talking about stock markets as a whole. Not one or two crazy stocks
- rileymat2 7y ago1926 is an intriguing year to start if your goal is to mislead.
- vmurthy 7y ago“S&P 500 got its start in 1923. 3 years later it was expanded to include 90 stocks...” https://www.reuters.com/article/us-usa-stocks-sp-timeline-idUSBRE9450WL20130506 https://www.reuters.com/article/us-usa-stocks-sp-timeline-id...