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That money comes out of the company which came out of other people. It doesn't come from thin air. I know you can create "value" when currency changes hands, b
by codexon 12y ago
That money comes out of the company which came out of other people. It doesn't come from thin air.
I know you can create "value" when currency changes hands, but we're talking about beating the average returns. And for someone to do better than the market, someone else will obviously do worse.
- Mikeb85 12y agoAnd it returns to the economy when those investors buy basically anything. Money will always return to the economy, except when people hoard cash (which is why inflation is key to our society - it reduces the value of cash and increases the money supply so that hoarding is a bad investment). > And for someone to do better than the market, someone else will obviously do worse. While it's true someone will do worse (especially when 'trading'), that 'worse' could just be a lower profit. After all, the stock markets do generally go up over time. Inflation helps, and of course economic growth too. One post isn't enough to explain the entire monetary system, however investing isn't a 'zero-sum' game...