I think this is an age old debate whether the market is gambling or not. Ultimately, one is not in control of the outcome so it's gambling. But are the odds stacked against you as they are in a casino house? Depends on ones experience. Are the odds better in poker? I see enough WSOP to know that when all things are equal they are a toss up. The experts win against lesser foes. And one jackpot covers lots of "little losses."
Here is my take:
1) For a value investor, he doesn't even worry about market direction, but whether you're getting the company below book value whether or not people will value it accordingly isn't the issue.
2) Growth investors have to rely on the continued compounding of a stocks returns.
3) Technical analysts play the odds. But they are from the houses perspective as opposed to the players where the games don't favor them.
Another big issue is what to do with the earnings.
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1 comment:
I don't know who you are. Please don't try to sell me anything. I'm trying to have a fun and informative website.
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