I don’t care too, much for money, money can’t buy me love….
Which is just as well, since I have much less money today than yesterday! 🙂
More market craziness. shares are dropping like stones. And the really funny thing is, house prices, which started all the madness, seem to have dropped, but much slower and to a lesser degree. Property markets dont crash overnight, reflecting the relative lack of liquidity in them. Sharemarkets on the other hand, where liquidity is prized, will crash overnight. This crashing effect must have a psychological impact on investors, that property investors in general will avoid.
So whats the point of sharemarket investing? We’ve already discussed that the risk in sharemarkets is basically unknowable, coupled with the liquidity characteristic means that wealth invested in sharemarkets can (and has) been wiped out overnight. So essentially, from a human psychology point of view, sharemarket investing makes much less sense than property investing.
WTF? Sharemarket investing should be much more rewarding than property investing. Shares are investing in productive assets, companies creating value, and jobs and innovation and progress. Property (at least residential property) is investing in unproductive assets. Why should sharemarkets be so much more volatile, higher risk (at least perceived risk), than investing in unproductive assets? Something is seriously, I mean, incredibly seriously, wrong with the markets. Not just the current crisis, but the sharemarket as a concept. How can the incentives to invest in property be so much more reasonable than shares?
huh? Am I missing something? The sharemarket appears to be failing to push capital to companies that need it to grow. Has it been hijacked by derivative players, speculators, and hedge funds? do we even need derivatives?
something is sick in the markets. Any ideas?