4 ms·
> The ugly truth of the stock market is that for every winner there is also a loser. That's hardly the case. The only loser is someone who sell a stock for a l
by jonknee 14y ago
> The ugly truth of the stock market is that for every winner there is also a loser.
That's hardly the case. The only loser is someone who sell a stock for a loss (and even then considering dividends and the tax advantages it doesn't necessarily mean a net loss).
- precisioncoder 14y agoIf our economy has $100 we both receive a paycheck for half the remaining money and you buy a stock that gives you $1/year and I do not, assuming we spend the same you will automatically become richer each year until we are both paid a pittance while you sit on most of the money. I think that was the general idea.
- stouset 14y agoExcept, the reason the stock is giving $1/year, is because the economy is actually growing by $1/year.
- precisioncoder 14y agoAssuming that is true inflation will still decrease the real value of the goods I purchase providing you with a greater share of the economy year after year. The general idea is that goods will increase at a higher rate than $1/year providing me with more wealth regardless of how rich you become. Unfortunately while a good idea in theory it hasn't really seemed to work in the US. The gap between the rich and the poor increased dramatically and minimum wage workers having trouble surviving.