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That used to be case when you had to clear certain hurdles to IPO and stay listed. With the recent SPAC craze you no longer have to meet any of those. All you
by hahahahe 6y ago
That used to be case when you had to clear certain hurdles to IPO and stay listed. With the recent SPAC craze you no longer have to meet any of those. All you need is a credible narrative. In that environment, no, you shouldn’t expect stocks to have positive returns. Long-term positive return in stocks is purely a function of required rate of _cash_ return. But if an underlying business is never meant to ever distribute cash back to investors, the stock is worth exactly ZERO. In other words a ponzi scheme.
- felipap 6y agoYou shouldn’t expect EVERY stock to have positive returns. Unless the bad stocks to which you're referring become a considerable part of the market, you should still expect stocks, on average, to earn you real interest.