IS INVESTMENT REALLY THE “SOLUTION” TO A BEAR MARKET?
THIS past month, the biggest issue for me as a “fixed income consumer,” has been inflation and mal-distribution. In today’s news there was a suggestion that the “solution” is to invest more in the stock market. Personally, I’m not inclined to such. Let me explain:
The “market” (meaning “Stock Market”), in my opinion, is becoming frenzied and chaotic, having enjoyed and recently exited an unparalleled Bull market, now entering “Bear” market territory, a cutesy way of saying that there has been at least a “20% decline from near-term highs.” Bear markets are thought of by many as a definite warning of a looming economic recession. “Investing” in stock provides the companies in which one invests with more capital, and the investor, knowing that, a psychological “edge” in terms of believing it will tip the odds towards a better return on investment. In addition, I hear all the time that frenzy, chaos and falling stock values are the best time to invest. Really?
First, it’s important to me to define what stock “investment” means. In my book, it’s not investing; it’s gambling. An investment for me means that the principal is guaranteed and what I’m dealing with is a greater or lessor return. When the principal is NOT guaranteed, I consider that gambling, and, as a fixed income consumer, I’m not inclined to gambling.
Second, the stock market, as I see it is a illusory human “money” game in which those with more knowledge and information take from those with less knowledge and information. It’s not about “luck” so much as another money scheme in which the brokers, like casinos, are constructed to always win, typically at the expense of the gambler. The “odds” are typically better for knowledgeable and informed brokers.
Third, even in today’s computer age, there are both technical and human restraints on the speed at which one can “adjust” one’s gamble. By the time the gambler is ready to change “investment” tactics or “investments,” the opportunity to do it without loss of principal is often long gone, meaning to me that the house is, more often than not, much faster than or, in summary typically “against” the gambler.
Fourth, the “Dow Jones” and other statistical summaries of stocks, like all other statics often mean little to nothing when dealing with individual companies. Betting on the “average” is a bit like deciding if one is pregnant by reading a report stating what percent of the world’s population at any point in time are pregnant. My opin, of course.
Finally, “the market” is based on the capitalistic concept of value based on increasing profit. A company that does a continuing service to humanity but isn’t increasingly profitable is not necessarily less valuable than a company simply making rapidly increasing profit. Gambling within the stock market can easily end up about the “money game” and turn against humanity, e.g. “investing” in weapons manufacturers. And I always try to remember that money, like power, is a human invention. Both are ultimately “gaming” illusions the results of which can affect both players and humanity at large. Again, my opin.
Call me as crazy, chaotic, biased and uninformed as today’s “market,” but I think at the least one should make a distinction between investing and gambling. Perhaps that at least would make more sense than simply “investing more during a Bear market” to cover others’ losses.
https://i.postimg.cc/4yykzW18/brown-b...
#RaymondGaynor #DanielSJanik #investment #gambling #statistic #bear #market #stock #capitalism #IncreasingProfit #profit #money #power #illusion
The “market” (meaning “Stock Market”), in my opinion, is becoming frenzied and chaotic, having enjoyed and recently exited an unparalleled Bull market, now entering “Bear” market territory, a cutesy way of saying that there has been at least a “20% decline from near-term highs.” Bear markets are thought of by many as a definite warning of a looming economic recession. “Investing” in stock provides the companies in which one invests with more capital, and the investor, knowing that, a psychological “edge” in terms of believing it will tip the odds towards a better return on investment. In addition, I hear all the time that frenzy, chaos and falling stock values are the best time to invest. Really?
First, it’s important to me to define what stock “investment” means. In my book, it’s not investing; it’s gambling. An investment for me means that the principal is guaranteed and what I’m dealing with is a greater or lessor return. When the principal is NOT guaranteed, I consider that gambling, and, as a fixed income consumer, I’m not inclined to gambling.
Second, the stock market, as I see it is a illusory human “money” game in which those with more knowledge and information take from those with less knowledge and information. It’s not about “luck” so much as another money scheme in which the brokers, like casinos, are constructed to always win, typically at the expense of the gambler. The “odds” are typically better for knowledgeable and informed brokers.
Third, even in today’s computer age, there are both technical and human restraints on the speed at which one can “adjust” one’s gamble. By the time the gambler is ready to change “investment” tactics or “investments,” the opportunity to do it without loss of principal is often long gone, meaning to me that the house is, more often than not, much faster than or, in summary typically “against” the gambler.
Fourth, the “Dow Jones” and other statistical summaries of stocks, like all other statics often mean little to nothing when dealing with individual companies. Betting on the “average” is a bit like deciding if one is pregnant by reading a report stating what percent of the world’s population at any point in time are pregnant. My opin, of course.
Finally, “the market” is based on the capitalistic concept of value based on increasing profit. A company that does a continuing service to humanity but isn’t increasingly profitable is not necessarily less valuable than a company simply making rapidly increasing profit. Gambling within the stock market can easily end up about the “money game” and turn against humanity, e.g. “investing” in weapons manufacturers. And I always try to remember that money, like power, is a human invention. Both are ultimately “gaming” illusions the results of which can affect both players and humanity at large. Again, my opin.
Call me as crazy, chaotic, biased and uninformed as today’s “market,” but I think at the least one should make a distinction between investing and gambling. Perhaps that at least would make more sense than simply “investing more during a Bear market” to cover others’ losses.
https://i.postimg.cc/4yykzW18/brown-b...
#RaymondGaynor #DanielSJanik #investment #gambling #statistic #bear #market #stock #capitalism #IncreasingProfit #profit #money #power #illusion
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