The idea that non-dividend stocks are equity is a mental illness. The stock market is built on fallacies and imagination and checks SEC's definition of a ponzi scheme. Stocks have no physical or intrinsic value, nor a legitimate monetary value, but only an illegitimate asset valuation that is not backed by any entity. Ponzi assets only posses ponzi value, which can only be realized through a monetary exchange in a scenario where no defined entity has to take part in the exchange.
Government-issued cash currency was created as a medium of exchange to assist transactions and the exchange of goods and services. It is called legal tender, which means it is legally recognized as a valid form of payment for all debts, public and private. It is uniquely different from real estate, stocks, and pretty much everything in our world. It is what investors ultimately care about and want, and why companies need to print stocks to get legal tender. Stock market is a negative-sum game which allows companies to raise capital without paying back, because they have no obligation to the common shareholders.
Passionate finance junkies always reach a point where they can’t explain how shareholders can make money without cash from new investors, which is an observable fact.
I worked for a hedge fund that collapsed in Fairfax, VA, and a trading firm out of Bucharest. I worked in quantitive analysis with Washington Mutual and Bernstein Alliance. Worked in an esoteric market called life settlements for a while. You can ask me anything.
Also what’s your opinion of Benjamin Graham and the theory of value investing?
Luke Lee
Don't know and no one can use fake, opinionated math to predict it. (Ever wondered why only financial markets work that way and not other types of markets?) What caused the historial market crashes was a lack of cash from new investors. I don’t know when the next crash will happen or what the experts will blame it on, but I’m certain the crashes we’ve witnessed thus far are just symptoms of a disease foreshadowing something far more destructive. At some point there will be one magnificent crash that will end the stock market permanently. The market will not be able to bounce back from it because unlike the dot-com crash or the housing bubble which were blamed on indirect issues like failing businesses and bad loans, this last unrecoverable crash will be the result of something direct and fundamental: investors pulling their money out of the system as they realize the reality of the Ponzi.
Camden Hall
>the theory of value investing I have the same opinion on all financial "theories". You are essentially "investing" (read, gambling in a negative-sum game) with fictional assets not backed by anything. If you want to invest in something, invest in dividend stocks or bonds. But do not invest in dividend stocks in the stock market, because the dividends are paid for while dilluting the stocks, hence with money from newly printed stocks. Financial junkies will misuse words like “theory” to describe ideas that have failed experimentation, and talk about fictional concepts with factual conviction. There are no theories in finance and there never will be. A theory is an idea that has been validated with experimentation and can yield repeatable results.
Ryder Hughes
>The idea that non-dividend stocks are equity is a mental illness well stock is mostly overvalued today, but the idea of owning shares and determining the board of directors does have value. it is bullshit that owning .00000000000000000000001% of a company has value though I agree with that.
Lucas Walker
What's your stance on gold in light of implementation in Basel 3 protocol? If you are familiar to the matter ofc
Ryder Sanchez
You are not owning anything, except a stock which you can sell to another investor. You don't have voting rights and dividends with common stocks and the company has no relation to the stocks, except for as a mean to raise capital without paying its shareholders back. Hence, Tesla can realize a -6 billion loss from 2010-2021 while $TSLA increase many times in valuation in the same period. Profits from stocks don't come from the earnings and growth of the underlying company. The idea of "owning stocks is like owning a piece of the company" is is a conjecture or a hypotheses at best that failed the validation process and would’ve been rejected as rubbish in legitimate science fields.
Lincoln Lee
When the vaxxies die off and China invades.
Justin Green
Don't know much about it and I don't want to talk about it, but money in the bank backed by a deflationary unproductive asset seems like a bad idea.
Daniel Baker
actually common stock usually has voting rights, preferred stock does not
Adam Robinson
From a quantitative perspective, voting has close to zero value. This is evident in the narrow gap between the prices of Google’s non-voting C shares and voting A shares. The last time I checked the difference between Class A and Class C was of 0.12%. In other words, investors who are buying and selling Google shares believe the right to vote the right to vote is just worth a 0.12% premium. And lastly, in my candid opinion, which is also shared by honest investment bankers who understand how easy it is to manipulate votes in a corporate structure, when it comes to stocks, voting is bullshit. It’s an ornamental detail that makes stocks sound legitimate so firms can avoid paying dividends.
Brandon Jackson
You might take a look, it's interesting document implemented in early 2020-2021 which basically states that physical gold is Tier 1 collateral, same as treasuries and etc, and it's an EU regulation which means every bank need to comply with it. If we would see further de-dollarization and well known forces at these scam exchanges would take place (omega short squeeze 9000), those who are prepared would benefit a lot, those who don't, well nobody cares for them lol
I'm not from some radical camps like silver ends the fed / GME or other bandwagon, just been into preserving wealth and there are pretty interesting underwater movements in gold scene. Not to get into schizo territory I highly suggest to read / watch QRD for Basel 3 in regards to gold specifically, might by handy if you've been long enough in finance industry
Not the best vid but you could get an idea if interested
Going to sleep, have a nice day man
Ryder Howard
it is quite bullshit isn't it but then again so is our currency. value is determined by lemmings
Lincoln Adams
>>The stock market is built on fallacies and imagination and checks SEC's definition of speculative value
FTFY fagbutt
Justin Sullivan
Currencies are not bullshit. It is a real thing backed by multiple private and government guarantors. Stocks are intangible things that are priced in terms of cash, but the price of a stock is not legitimately backed by anyone. If you have a $1,100 share of Google, the only money you are entitled to from Google is the par value of $0.001.
Where can I purchase Gold spots for less than 20 dollar trade charg per ounce
Fucking Chinese lady up the street wants 200 on top of 1785.00 close today
Is that normal? It was for US Eagle ounce
Connor Sullivan
>Currencies are not bullshit. It is a real thing backed by multiple private and government guarantors. kek. money is fiat. bullshit. it represents nothing except the value that people think its worth
Gavin Foster
I have had an issue with this for years. The idea of a stock just doesn't match up to ownership. If I own 1 acre out of 100 I can built and utilize that acre how ever I want. If I own 1% of a company. I can't do jack shit with it. I literally only have the option to hold or sell. I think holding stock should automatically entitle you to a dividend. Its a grift that works like a go fund me scheme for companies that want to give you nothing in exchange for cash. The only time its valuable is if you have enough where you are actually able to influence decisions the company makes.
Although there is a counter point and its that legal tender is more of a ponzi scheme than stocks. Currency is theft. The federal government taxes every transaction you make with money while if you bartered you would be able to retain more real value. They also commit theft through the use of inflation. This allows them to steal value from your currency and lessen their debts that they incurred selling you bonds. Meaning that they robbed you twice. Companies and stocks when hit with inflation just charge more to adjust for the inflation and then their stock price goes up to match or exceed inflation. Its basically a ponzi scheme to avoid the downsides of another ponzi scheme.
Justin Brooks
>it represents nothing except the value that people think its worth 1 euro = 1 euro It's legal tender issued and backed up by the central bank.
Chase Cooper
My friends from US buy at sdbullion / jmbullion / apmex. It's okay that over-spot price is much higher, because spot price is set for paper contracts (there are like 5000x more paper gold than physical, which means if someone requests delivery there simple won't be enough to cover which will bring trading houses belly up). So when you try to get physical, you pay premium, because there is not enough to meet the demand, and logistics are fucked so meeting demand is even harder. You can snipe for lower premiums but eventually you could be in a position of having to pay even higher. I'd suggest dollar cost average and don't go crazy to throw 80% of your savings, way to 100 ounces is one ounce at a time. 100oz is generally used as "enough" for retirement, ofc based on your preferred lifestyle it could be more, but it's sort of rule of thumb
Carson Hill
>It's legal tender issued and backed up by the central bank. that dollar represents nothing. it is circular reason. no better than 1 stock apple = 1 stock of apple backed up by the NASDAQ or whatever
Colton Diaz
Well, I'm not going to talk too much about that. There are some finance junkies who, when faced with the fact that stock market is a ponzi scheme that shuffles money between investors and can't produce more money than investors contribute, they start calling the national currencies a ponzi scheme, which they aren't. They're a simply legal tender made to assist economic transactions and that's it really.
Noah Gomez
Everything is a ponzi scheme. Yet reliable dividend paying shares, along with real estate, have proven to be the best investments long term. Are you suggesting a savings account that pays less than 1% interest?
Luke Jenkins
>Stock market is a Ponzi scheme Now tell us something new
Julian Cruz
whatever. just saying its all bullshit. You can trade futures instead, at least you are trading in something real
Bentley Adams
ive been saying this and getting into many irl arguments i was sounding like a crazy person its true, its organized ponzi, that they promise wont collapse i will participate, but i understand what it is i dont own a right to a portion of Coke's earnings, how they make it sound i have some CokeCoin i will sell it to someone else i get passive staking rewards for holding CokeCoin bless you OP
Jackson Cooper
Actually legal tender is more of a ponzi scheme than stocks. A country can just print more money to dilute the value of the currency you hold and reduce its buying power. Stocks are not allowed to reduce the percentage of a company that you hold. They can only perform splits which multiple how much of the stock you hold, but don't change percent. Stocks aren't allowed to steal value while currency is.
Ryan King
you are trading coupons based on what you think the price is, you aremt actually moving gallons of oil between parties just coupons
Colton Turner
No you are. You ever here about the guy who cornered the market on onion futures and made the price of onions explode? That guy fucked the market so bad they made it illegal to trade onion futures.
Nathaniel Watson
>you aremt actually moving gallons of oil between parties >just coupons you can move gallons of oil yourself if you desire to do so you know. and even if you don't it represent something actually happening. within the scope of finance its pretty real. you can do a bond as well
