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Running a business is less and less about actual business outcomes and more about juicing stock. And the stock market itself is divorced from reality as compani
by fzeroracer 2y ago
Running a business is less and less about actual business outcomes and more about juicing stock. And the stock market itself is divorced from reality as companies whose output has gone down over time sees higher valuations because the owner has cult appeal. So everything gets worse and more expensive year over year while feckless suits get sloshed over company dinners.
- malfist 2y agoThe stock market is like a sports betting pool where the players are allowed to bet on themselves
- kibwen 2y agoThe stock market is just a predictions market, and any predictions market at scale destroys the subject of its prediction.
- mhog_hn 2y agoWhat is the long term effect on accuracy when a large mass simply moves XX% of their monthly paycheck into top ETFs? I don’t disagree with what you said though, simply sharing thoughts - I think it leads to markets being more sensitive to macro strategies rather than actual fundamentals
- gruez 2y ago>What is the long term effect on accuracy when a large mass simply moves XX% of their monthly paycheck into top ETFs? Such investments are typically market cap weighted, which means their effect on stock prices are neutral. Moreover there's still room for hedge funds (and other sophisticated) investors to engage in price discovery.
- nthingtohide 2y agoCan we have a different kind of stock market which forces participants to consider long term outcomes more? E.g. no HFT firm should be able to make a profit from such a stock market. Selling stocks earlier and often should result in a penalty or percentage being taken away as a fee. As a retail investor I would love to use invest and forget strategy based on trends observed in such a stock market.
- callc 2y agoConsider no stock market. Just keep the company private. Honest question, why do so many companies strive to go public?
- mistercheph 2y agoAccess to large pool of capital
- nthingtohide 2y agoThere are other places where people can gamble
- gruez 2y ago>E.g. no HFT firm should be able to make a profit from such a stock market. Selling stocks earlier and often should result in a penalty or percentage being taken away as a fee. Maybe by "HFT" you only mean "those evil hedge funds that are pushing companies to chase next quarters' earnings", but there's nothing fundamentally wrong with high frequency trading. Market making[1] is high frequency trading, and basically involves offering to both buy and sell and given stock, and pocketing the spread. That increases liquidity, making it easier for other traders to buy/sell stock without taking a huge loss. It's unclear why you'd want to ban this, or how you'd distinguish this from whatever evil HFT you actually want to ban. [1] https://en.wikipedia.org/wiki/Market_maker https://en.wikipedia.org/wiki/Market_maker
- nthingtohide 2y agoI am not saying HFTs can't sell but there should be penalty for higher frequency. It means they have to craft algorithms which will take longer term view of stocks (and their fundamentals) rather than ignorance of other participants
- echoangle 2y ago> where the players are allowed to bet on themselves Wouldn't that be insider trading? You can't short your own company before announcing bad things to make money from it.
- slackernews9 2y agoIf you think the rich people haven't invented a way around those pesky "rules"...
- echoangle 2y agoWell people are also betting on themselves in sport betting so if we account for ignoring the rules, I don't see why the qualfiier that betting on yourself is allowed would be needed.
- ihsw 2y ago[dead]