It isn't about investing in companies

The stock market is not about investing. It is about picking stocks that are going up or going down. The word investing is just a cover for what the stock market really sells to everyone. They sell speculation and any of you who you’re your money in your 401 K or your mutual fund are speculating on stocks going up. Everything about the market as sold to the general public is about investing and growth of companies. The reality is that the stock market is more about stocks and the economy that it is about companies and profits. A number of “bad” companies can have high flying stocks in good markets. A number of good companies can have dropping stocks during a bear market and even at times during a bull market. The system has been sold to the public on the basis that if your savings account is giving you 2 or 3 % and that CD 4.5 % and Wall Street can give you 6-8 % or even 10% you will be glad to park your money in a mutual fund. The fallacy that the market always returned bigger gains over time was sold by Wall Street in ways only rivaled by snake oil salesman. The more money we give to their funds, the more the tried to figure out how to exploit those dollars to get massive returns for themselves and keep giving you your 6-10%. The system is set up for those in the know and who can get their hands on insider information. Of course it is against the law to trade on insider information but it is clear that it happens nearly every day. As I mentioned and the previous article that short sellers are not the problem, and they are often the only ones who get analysis correct. The past two years has shown us that rating agencies are no better than you or me when it comes to evaluating companies