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Stock market is real, what's fake is all the modelling they do in excel.

• ASalazarMX 6y ago
  Stock market is real for the few privileged insiders, the rest of us have modest profits or even loses that pay for someone else's profits.
  • marcusverus 6y ago
    Silliness. The market is effectively a free money machine for people who are capable of delaying gratification. The fact that most people are not capable of this is not the fault of the market. And, for the record, the rich aren't getting better returns than the rest of us--the S&P beats the vast majority of Hedge Funds, year after year. https://www.cnbc.com/2019/03/15/active-fund-managers-trail-the-sp-500-for-the-ninth-year-in-a-row-in-triumph-for-indexing.html https://www.cnbc.com/2019/03/15/active-fund-managers-trail-t...
    • eckmLJE 6y ago
      Half of Americans own stocks at all, and the rich don't have all their money in hedge funds.
    • XorNot 6y ago
      Anyone who can consistently beat the market with the their process doesn't stay in the public investment game for long - why would they? They turn into self-funding private investment firms.
      • Jorge1o1 6y ago
        GP is actully referring to just earning the market rate of return, not beating it. Stocks for the Long Run and all that
    • hshshs2 6y ago
      sorry but the real “rest of us” is the 70% of the population that doesn’t even have a 401k... and it’s not because they’re bad at delaying gratification
    • ClumsyPilot 6y ago
      "The market is effectively a free money machine" That's clearly an absurdity and not physically possible. Whatbwe do know is that every time we have QE 90% of the money ends up in financial markets, not real economy. This is a well known problem, and Yanis Varufakis has talked about it at length
      • marcusverus 6y ago
        >That's clearly an absurdity and not physically possible. And yet the market has averaged a 7% annual return since 1870.
        • _trampeltier 6y ago
          But special this year the USD lost a lot of value. USD - CHF (Switzerland) is about minus 8.5%, so your +7% would be still a minus business for me. The high stock market and the high prices for building are more the true inflation than a true plus on the market.
          • rajamaka 6y ago
            USD so low that it's still higher than 50% of the years this decade.
        • itsoktocry 6y ago
          Nominal returns. Unfortunately, none of us are average. You can gain 100% many times, but lose it only once. It's going to be fun when the "just buy an index and you'll be fine" strategy falters (in this case a cap-weighted, large US company index that buys shares at any price). The S&P500 isn't diverse like they talk about in finance textbooks. There are quite a few years in that article you linked where hedge funds beat the index (2001-2005, 2007, 2009, 2010). It's almost as if who beats whom is random...
          • marcusverus 6y ago
            >Nominal returns. Unfortunately, none of us are average. With index funds and ETFs everywhere, it is quite common to be average. It's also far easier to buy an all-market index fund/ETF than to pick stocks or active funds. > You can gain 100% many times, but lose it only once. True of all investments. >It's going to be fun when the "just buy an index and you'll be fine" strategy falters (in this case a cap-weighted, large US company index that buys shares at any price). The S&P500 isn't diverse like they talk about in finance textbooks. There are quite a few years in that article you linked where hedge funds beat the index (2001-2005, 2007, 2009, 2010). It's almost as if who beats whom is random... Not over the long run. From the same article, "After 10 years, 85 percent of large cap funds underperformed the S&P 500, and after 15 years, nearly 92 percent are trailing the index."
    • Retric 6y ago
      Risk an opportunity costs is a major issue with that argument. In 1981 for example the 30 Year Treasury Rate was over 14% which significantly outperformed the stock market over that period. https://www.macrotrends.net/2521/30-year-treasury-bond-rate-yield-chart https://www.macrotrends.net/2521/30-year-treasury-bond-rate-...
    • dragonelite 6y ago
      It was like put money in x wait/monitor till it starts moving up or down lock in your maximum losses and your minimal profits with stop loss orders. I was kinda dumb strucked how easy it was to grow your initial input after the huge market drop in march and just by reading some blogs. Things will probably change after the corona pandemic.