4 ms·

Not smart with economics, is the mainstream idea that it will always go up long term? I always kind thought crashes were inevitable occurrence, and that its got

Not smart with economics, is the mainstream idea that it will always go up long term? I always kind thought crashes were inevitable occurrence, and that its gotta go down for it to go back up again. And inflation and the ever higher line and so forth is just ultimately a superficial thing to keep things moving. Or rather, wouldn't it be more rational to strive for the line to stay even? Such that we can save all the tumult, the upticks in suicide, the poverty.

deleted 4y ago
[deleted]
rr808 4y ago
> its gotta go down for it to go back up again. I think that is the point. If it crashes it'll inevitably go back up is the expected behavior. It isn't always true, Japanese market is still lower than 1989. Measured in dollars most international markets have gone sideways for 25 years.
- SirLJ 4y ago
  That’s why passive investing is great for the regular investor, provided a little research is done to avoid buy and “hope” trap…
- ac29 4y ago
  > Measured in dollars most international markets have gone sideways for 25 years. This is not even remotely true if you include dividends.
pixl97 4y ago
It is massively harder to design a steady state economy than it is to have one with a constant upward trend on things like inflation. You have less degrees of freedom maintaining 0, then you do +.0001 to (some higher number). Also there is game theory elements involved here when it comes to trade. You have to get everyone of any size to also agree to steady state the economy also.