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Stock market

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Many people have the mistaken impression that Congress regulates Wall Street. In truth that's not the case. The real truth is that Wall Street regulates the Congress. ~ Bernie Sanders

A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately.

Quotes

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  • The stock market is a no-called-strike game. You don't have to swing at everything — you can wait for your pitch. The problem when you're a money manager is that your fans keep yelling, "Swing, you bum!"
  • Stock prices will always be far more volatile than cash-equivalent holdings. Over the long term, however, currency-denominated instruments are riskier investments – far riskier investments – than widely-diversified stock portfolios that are bought over time and that are owned in a manner invoking only token fees and commissions. That lesson has not customarily been taught in business schools, where volatility is almost universally used as a proxy for risk. Though this pedagogic assumption makes for easy teaching, it is dead wrong: Volatility is far from synonymous with risk. Popular formulas that equate the two terms lead students, investors and CEOs astray.
  • Hating Wall Street is an American tradition that dates back even to the days when Thomas Jefferson cursed that money lover Alexander Hamilton. And for centuries, the complaints about it have largely stayed the same: 'It does nothing! It creates chaos! It's a parasite that sucks hardworking Americans dry!'
  • A selloff is a situation in which many investors sell their shares of a stock suddenly, often because of bad news.
  • the physical emotional change

'

  • Say the words market correction and many investors immediately think of a crash or a bear market, with the panic-inducing idea that they’ll be living on Ramen noodles through retirement. In reality, stock market corrections happen relatively frequently, and they aren’t nearly as bad as you might think.”
  • The U.S. stock market was now a class system, rooted in speed, of haves and have-nots. The haves paid for nanoseconds; the have-nots had no idea that a nanosecond had value. The haves enjoyed a perfect view of the market; the have-nots never saw the market at all. What had once been the world’s most public, most democratic, financial market had become, in spirit, something like a private viewing of a stolen work of art.
  • Throughout the 1980s, which was the second-best decade for stocks in modern history (only the 1950s were slightly more bountiful), the percentage of household assets invested in stocks declined! (p. 15)
    By sticking with stocks all the time, the odds are six to one in our favor that we'll do better than the people who stick with bonds. (p. 16)
    The key to making money in stocks is not to get scared out of them. This point cannot be overemphasized. Every year finds a spate of books on how to pick stocks or find the winning mutual fund. But all this good information is useless without the willpower. In dieting and stocks, it is the gut and not the head that determines the results. (p. 36)
    While catching up on the news is merely depressing to the citizen who has no stocks, it is a dangerous habit for the investor. (p. 40)
    A healthy portfolio requires a regular checkup—perhaps every six months or so. Even with the blue chips, the big names, the top companies in the Fortune 500, the buy-and-forget strategy can be unproductive and downright dangerous. ... Investors who bought and forgot IBM, Sears, and Eastman Kodak are sorry that they did. (p. 284)
  • The most important thing I have done is to combine something esoteric with a practical issue that affects many people. In this spirit, the stock market is one of the most attractive things imaginable. Stock-market data is abundant so I can check everything. Financial markets are very influential and I want to be part of this field now that it is maturing.
  • When asked what the stock market will do: It will fluctuate
  • The first question is, "What is the nature of the stock market?" And that gets you directly to this efficient market theory that got to be the rage — a total rage — long after I graduated from law school.
    And it's rather interesting because one of the greatest economists of the world is a substantial shareholder in Berkshire Hathaway and has been for a long time. His textbook always taught that the stock market was perfectly efficient and that nobody could beat it. But his own money went into Berkshire and made him wealthy. So, like Pascal in his famous wager, he hedged his bet.
    Is the stock market so efficient that people can't beat it? Well, the efficient market theory is obviously roughly right — meaning that markets are quite efficient and it's quite hard for anybody to beat the market by significant margins as a stock picker by just being intelligent and working in a disciplined way.
    Indeed, the average result has to be the average result. By definition, everybody can't beat the market. As I always say, the iron rule of life is that only 20% of the people can be in the top fifth. That's just the way it is.
  • Your reminder that America's richest 1 percent now own half the value of the U.S. stock market. The richest 10 percent own 92 percent. So when Trump says the stock market is the economy, know who he's really talking about.
  • Let us begin with a definition of economics. Over the last half-century, the study of economics has expanded to include a vast range of topics. Here are some of the major subjects that are covered in this book:
● Economics explores the behavior of the financial markets, including interest rates, exchange rates, and stock prices...
  • You know, I think many people have the mistaken impression that Congress regulates Wall Street. In truth that's not the case. The real truth is that Wall Street regulates the Congress.
  • Let us wage a moral and political war against the billionaires and corporate leaders, on Wall Street and elsewhere, whose policies and greed are destroying the middle class of America.
  • It can be argued that the U.S. brokerage and investment banking industry has transformed the modern American stock market into nothing more than a mechanism for transferring wealth from shareholders to management.
  • The reality is that business and investment spending are the true leading indicators of the economy and the stock market. If you want to know where the stock market is headed, forget about consumer spending and retail sales figures. Look to business spending, price inflation, interest rates, and productivity gains.
    • Mark Skousen; in: The Freeman: Ideas on Liberty, Vol. 60, Nr. 3-10 (2010). p. 7
  • It would be misleading to leave the reader with the impression that speculation and investment together exhaust the subject of security profits. Not all fortunes founded on stock-market operations are obtained by either skillful investment or adroit speculation, for other procedures of a less defensible sort, which fall outside the range of our discussion, are resorted to sometimes.

See also

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Wikipedia
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