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Yeah it's strange that the market cares so little about profits, and it runs much on emotions, but that still doesn't make it "wrong" in any way, in my point of
by jseban 5y ago
Yeah it's strange that the market cares so little about profits, and it runs much on emotions, but that still doesn't make it "wrong" in any way, in my point of view, as a ponzi scheme would. Progress is still being made, and revenue as well.
By the way, I hope you didn't find my tone condescending because I made such simplistic examples, just trying to be helpful, but probably mostly helping myself understand by typing it out :)
- newswasboring 5y agoMaybe Ponzi scheme is too loaded a term but both have the same failure mode. At some point people will wise up and demand some real returns. It might not collapse but it will stop growing and there will be a knock on effect as so much of it is taken on leverage.
- nightski 5y ago"Wising up" is just the stock price going down. Happens all the time. Dividends are also paid regularly, which is real money in the investors pocket.
- newswasboring 5y agoBoth Tesla and Amazon have never payed out a dividend even though they have had profitable quarters. Plenty other companies have never even had a profitable quarter. Yet the stock price keeps going up.
- deleted 5y ago[deleted]