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All this retail interest in meme stocks is gambling, plain and simple. More people entering the market creates a Ponzi effect where new entrants pay for the gai
by camjohnson26 6y ago
All this retail interest in meme stocks is gambling, plain and simple. More people entering the market creates a Ponzi effect where new entrants pay for the gains of holders, but by definition this is unsustainable. You can see this basically everywhere in the economy but the meme stocks are the most obvious.
Not financial advice, I thought Tesla was laughably over valued at $40 a share, never bet more than you’re willing to lose.
- Judgmentality 6y agoInvesting in any stock is gambling, plain and simple. The only difference is your risk tolerance. Remember when it was impossible for real estate investments to lose money 15 years ago?
- camjohnson26 6y agoGambling is when you take big risks with hope for a big payoff. It’s possible to invest in the stock market and limit risk by diversifying and hedging positions, but how many meme stock investors are doing that? It’s much more likely to see people yoloing their life savings on Tesla or GME and hoping to retire from the windfall. Not going to be pretty if stocks ever go down again.
- philihp 6y agoGambling is when the house has an edge, and you will statistically lose in the long run. Investing is when you have the edge.
- ManifestTendy 6y agoWould you consider placing your life savings on 100 1:3 payout coin flips investing?
- UncleMeat 6y agoIf your goal is to own a productive asset, it is investing. If your goal is to ride the price fluctuations of an asset, it is gambling.