Re:The Stock Market Is Shrinking
by nbisfuor on Sunday August 05, 2018 @10:25AM
(#17691465)
The only way to get big returns is secrets, just like always. Insider trading has given way to insider investing or insider hiring, which is insidery just like always. The problem with the stock market is that it is too easy for people to invest in, relative to other options (private companies) where you are still welcome to (encouraged?) to learn about secrets. So people blindly buy indexes (past returns = future results somehow, even though by definition people are overvaluing whatever is in the bucket) instead of finding secrets.
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Re:The Stock Market Is Shrinking
by physguy1123 on Sunday August 05, 2018 @10:50AM
(#17691591)
> even though by definition people are overvaluing whatever is in the bucket
By that do you mean that etfs which people might buy are overvalued compared to the stocks which compose the etf? Or that overinvesting in the etf results in the stocks getting overvalued?
Because as somebody that works on etf market-making, no liquid etf is trading outside of a reasonable fair-value spread based on the underlying components, unless you count situations where markets for the underlyings are closed so there's no exact fair value.