Comment on The richest people in the world are morally bankrupt
kinship@lemmy.sdf.org 3 weeks agoCan you tell me more about how easy is to beat the bank? (In your Casino analogy). I wan’t to learn such power.
And let me ask you as well… are you sure that you are not presenting survivorship bias? (The same as the billionares we are talking?). Ex: “I am a billionare because I worked hard and am way smarter”, etc.
I am genuinely asking, it sounds passive agressive but I guarantee you it’s not.
IronBird@lemmy.world 3 weeks ago
there’s a book called Reminiscences of a Stock Operator, written over 100 years, that lays it out pretty cleanly.
but the biggest point is this, the US’s financial markets are specifically left unregulated compared to others to “facilitate liquidity”. in practice, the various actors meant to “facilitate liquidity” are more often than not just extracting liquidity for themselves, as US financial rules essentially give control of the PA (price action) to whoever has the most $ in play.
the next is just this, that even given derivative has actual value (in theory, future projected dividend returns) and it’s current value (whatever it’s trading at now). the more these 2 values diverge the more someone who trades understanding actual-value can take advantage of people only trading on current-value. note, anyone who “invests” automatically/passively is trading on the latter, and the majority of people trading actively trade on the latter deliberately (they know the game is rigged and pull their profits out deliberately and often). for example, the overwhelming majority of stocks don’t, and never will pay, pay a dividend. therefore…rheir actual value is worthless, so why is anyone trading them?
zorflieg@lemmy.world 3 weeks ago
I’m glad that worked for you. Everything changed in 2008. I would say the old cycles of the market and PE valuation rationality is gone in favour of meme stock style gambling. I think that anything written prior to 2008 on the subject is less useful and the yearly value taking cycle is only still maintained by the old school investors. Some who want some sort of comfort in their approach and want to believe they can make it work. Those people are just handing money to each other now while the billionaires just gamble large sums for bragging rights.
IronBird@lemmy.world 3 weeks ago
oh for sure, as far as P/E and “expected future dividend returns” and shit it’s all cooked. that’s not where the $ is
that book really is eye-opening, wallstreet never changes, they just occasionally rebrand.
PFOS is just bucketshops all over again, for an example. the game is rigged, knowing/accepting that is the first lesson you have to get into your head before you start making serious $.