Re:Young Koreans are echoing r/WallStreetBets in their war a...
by vkou on Wednesday March 03, 2021 @12:40PM
(#26331796)
Almost every working person is buying stock - for decades - until they retire.
This means that for the majority of their life, they benefit from lower stock prices. You also get a much better annual return on your investment, through dividends, when you buy under-priced stock.
Shorting deflates bubbles, before they pop. It puts the brakes on irrational markets. Working people suffer quite a bit when bubbles pop, because there are knock-on effects to employment.
Also, for most Americans, their biggest 'investment' is their home [1], with stock ownership being a distant second. That doesn't mean that we should pursue a public policy intended to drive housing costs into the stratosphere [2].
Investing into the stock market through your working life is a bet on capitalism continuing to work. Short sellers aren't going to destroy capitalism.
[1] Actually, their biggest investment is their job, but again, for some reason, policies that advocate for raising the price of labor to the moon aren't very popular.
[2] Yet, here we are, in a world where a toolshed with no running water in a coastal metro area goes for a million dollars...
This means that for the majority of their life, they benefit from lower stock prices. You also get a much better annual return on your investment, through dividends, when you buy under-priced stock.
Shorting deflates bubbles, before they pop. It puts the brakes on irrational markets. Working people suffer quite a bit when bubbles pop, because there are knock-on effects to employment.
Also, for most Americans, their biggest 'investment' is their home [1], with stock ownership being a distant second. That doesn't mean that we should pursue a public policy intended to drive housing costs into the stratosphere [2].
Investing into the stock market through your working life is a bet on capitalism continuing to work. Short sellers aren't going to destroy capitalism.
[1] Actually, their biggest investment is their job, but again, for some reason, policies that advocate for raising the price of labor to the moon aren't very popular.
[2] Yet, here we are, in a world where a toolshed with no running water in a coastal metro area goes for a million dollars...