The casino effect has always been present in the more thinly traded areas of the stock market what I have called the Wild West: the Pink Sheets, the NASDAQ Bulletin Board, the Vancouver Stock Exchange, etc. I recall some years ago a supposed teen-age stock whiz who had an online newsletter who was executing the classic pump and dump scheme; he was caught and was forced to disgorge some of his profits. He would buy thinly traded stocks, recommend them on his newsletter, and sell when the buyers drove up the price. So this has been around for a long time and speculation has sometimes affected other parts of the market. We saw a mania in High Tech/Internet stocks in the late 1990's.If you don't see some similarities, you haven't been paying attention to Gamestock, AMC, and other meme stock phenomena.
If you equate sports betting with investing in the stock market, I can't help you. There is a big difference between the two and if you can't see this yourself, there isn't much that I can do.
Or how Robinhood markets stock trading to younger investors, i.e. the next generation.
Social media has turned elements of the stock market into just another casino.
To the point that Cliff Asness himself claims social media has "broken" the stock market.https://www.economist.com/finance-and-e ... tockmarketThe third argument is the most compelling: social media produces mobs. Or, as Mr Asness puts it, “instantaneous, gamified, cheap, 24-hour trading…on your smartphone after getting all your biases reinforced by exhortations on social media from randos and grifters with vaguely not-safe-for-work (NSFW) pseudonyms…What could possibly go wrong?” This is an idea that resonates with others. “For whatever reasons, markets now exhibit far more casino-like behaviour than they did when I was young. The casino now resides in many homes and daily tempts the occupants,” Warren Buffett has mused.
Warren Buffet himself is using the casino metaphor.
So, yeah, sports betting comparisons are not without merit.
But "elements" of the stock market are a far cry from the stock market itself and from the long term discipline that Bogleheads exercise. But no, I don't think the stock market is "broken" or that the market is a casino. Again, as John Bogle taught us that markets have economic return and speculative return. Don't think anyone here is saying that there is no speculation in the stock market or that there aren't manias.
I don't know, you seem to focus on one sentence in my posts and make a reply based upon that and seem to ignore my broader comments. I have commented on these issues pretty extensively during the whole time I have posted here. Again, I have posted many times regarding secular bear markets and that the markets can be essentially flat for long periods of time. I disagree with sweeping statements equating long term stock market investing with gambling. I have never played the game of chasing hot performing investments and have recommended to others not to do this. Shorter term, about anything can happen.
Statistics: Posted by nedsaid — Thu Sep 19, 2024 2:35 am — Replies 262 — Views 17404