LogikAndReazon
Gold Member
- Feb 21, 2012
- 5,351
- 668
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The Dow is based on the assumption the next sucker will pay more than the last sucker !
Untrue. A company's stock price is determined by the value of the company. The quality of its products, and the demand for same. It's innovation. It's cash balance. It's debts. It's workforce. It's competition. And so on and so forth.
At least it was until our politicians began to legislatively tilt the playing field in a big way to favor their friends, especially those in the financial sector.
Somewhere there was guy happy to sell stocks that would pay his investment back in only 7 years. We call that guy a moron. Similarly, somewhere there was a guy willing to buy stocks that wouldnt pay him back in 25. That dudes a moron too.Its a good thing these folks exist, because theyre the high level engine that powers profits in the market. Everything else is just the details. Its the people willing to over or under pay by a factor of two because theyre too uneducated to know otherwise that fuel the whole machine. Without a sucker, theres no reason to hold a poker game.
Such staggering wisdom . In an embarrassingly comical way.