macrocephalopod

really doing my best not to let my philosophy brain rot pull a sophomore level “these things only have value via consensus and if consensus changes then you should adapt” in regards to everyone saying markets are broken - Markets aren’t broken, your ideology of markets is broken

is there like a 5 minute explainer somewhere that illuminates the societal benefit of the current version of a stock market because I’m allegedly smart but have no idea how this kind of speculation type financial system could be beneficial

I mean the real answer is that financial speculation or activity is sometimes entirely unconcerned with overall societal benefit, but people here will be upset if I don’t mention that the market is a mechanic to match those who seek to raise funding from those seeking to lend it

Also I haven’t read this paper apart from the abstract but I am planning on digging into it later https://www.efmaefm.org/0EFMSYMPOSIUM/2017/papers/Does%20the%20Stock%20Market%20Benefit%20the%20Economy%20-%20updated.pdf …

I guess I meant more the algorithmic semi-instantaneous stuff. I understand in broad strokes the benefits for investment/cash influx, but I don’t get why stock purchases aren’t required to be held for, say, 6 months or a year to reduce the volatility.

I mean you wouldn’t be able to have mutual funds that rebalance more often than every 6 months, or ETFs, and you’d be saying no one could sell if there was bad news, and you’d be instituting forced buying and holding only

“No one could sell if there was bad news” — arguably if we just erased the price action between Jan 1 and Jun 30 in 2020, everyone would have been a lot better off