Comment on The Stock Market is Just Financial Fantasy Sports
MangoCats@feddit.it 1 day agoI used to think that the market “drove engagement” - keeping people with money interested in the dealings of the companies they invested their money in.
Lately, I feel like it’s just a giant Casino.
that is exactly how the US markets are setup, you can compare the US markets to EU or practically any other besides Japan and they’re drastically less exciting.
the US’s is designed around “maximizing lquidity” via a mix of over and under regulation all meant to increase volatility.
sp3ctr4l@lemmy.dbzer0.com 1 day ago
Way, way back in the day, when the primary model of stocks and the stock market was…
I buy 1 share of Company X stock, for Y dollars, and once a year, it pays me Z dollars as a dividend…
Yes, with that paradigm, it made a lot more sense to say that this ‘drove engagement’… because a stock operated more like a miniature bond in/for a company.
But, now the whole model is ‘stock price must go up forever’, nest eggs are capital gains realized upon retirement, that you take loans out against to avoid paying cap gains tax…
…not dividends gradually paid into a growing retirement savings account, managed by a regional or local bank.
Which entirely blows up that way of thinking.