Anyone else think the stock market is a huge pyramid scheme?
Question: I look at the market and that’s what I see. A reasonably-priced stock with a dividend is one thing.
With the valuations today it’s just a huge pyramid scheme in my opinion.
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Answer: Me too, then I hear kids in campus during lunch hours bragging to each other how much they made on YHOO, CMGI and RHAT (yes, they say Y.H.O.O. and R.H.A.T. the stock symbol) on their student loan, I realize…. fuck them. They’re only people, and we have lots of those around..
When I went to school, people wasted their student loans on buying an Acura Intergra with tinted windows. I heard (read in history books) that the generation before me (the ones who gets loans) waste their money on alcohol… I hope the door is big enough..
BTW, as an aside, what caused the last few BIG crash? I don’t mean the ones like last year (really just a small correction?), I mean ones where it just drops/side ways for over a year) Economic downturn? In fact that is the easiest way to make money in the stock market. You and I get together. I buy your 1000 shares of stock for $15, $5 over your cost. Then you buy it off me for $20. Voila, we both just made $5,000.
It’s easy. Stop the bitchin’ With all of the IPOs coming up, the number of shares on the market is escalating at an alarming rate, in my opinion.
Due to the increase in supply of shares, the amount of money invested needs to increase just to keep prices at stable levels. If the amount of money pouring into the market ever levels off, prices will fall precipitously. (I’m not saying this will happen, but it remains a possibility.) I am only referring to sectors with lots of IPOs, such as electronics, internet, and software firms.
Currently, I am investing in sectors that do not have a lot of IPOs.
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