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when the entire market goes up everybody makes "money", that is the definition of not-zero-sum. The fact that many people are competing for a limited quantity o
by afiori 5y ago
when the entire market goes up everybody makes "money", that is the definition of not-zero-sum. The fact that many people are competing for a limited quantity of gains is not enough to be a zero sum, the ammount of possible gains need to remain constant.
- xg15 5y ago> when the entire market goes up everybody makes "money" But they don't. They make "potential" money as in "if I sold now, I'd have $x more than before I bought the stock". But if all stock holders actually sold, the price would quickly plummet. So it's not possible to actually realize the full valuation as cash without literally printing money somewhere. I think it's important not to conflate actual and potential value. Otherwise you could also argue that lottery tickets are a great investment because you can instantly turn a few dollars into a million.
- afiori 5y ago> So it's not possible to actually realize the full valuation as cash without literally printing money somewhere. This is not a downside, clearly (economically speaking) we are much richer compared to few centuries ago, that came out of nowhere.