Casino vs. Stock Market: Common Gamble?
Is the Stock Market or a Casino the Same Gamble?
If any of you have ever wondered the answer to this question, you are not alone. With the uncertain times in the economy and financial scams rampant (Think Madoff Ponzi Schemes), wiping out years of financial retirement, it’s hard to deny that stock markets and the casino have much in common. When it comes to winning over the long term, and odds, during a stock down-turn, it is hard to see a positive expected return, even with a balanced portfolio.
There is definitely skill involved in picking winners in the stock market, just like there are different skills levels of poker players.
Are they both the same gamble?
To many people, the financial markets are nothing more than a giant casino where the gamble odds are stacked against them. Certainly, one can hardly blame them when they repeatedly hear about the computers that now dominate trading or the hedge-fund related insider trading scandals.
“By choosing a good provider of passively managed funds, an indexer can tilt the odds even more in her favor. “
By knowing and understanding how a casino makes money, one can compare those to companies in the financial trade. Insurance companies also resemble casino operations and the gamble behind the scenes that it operates on. Insurance companies gamble on the well-being of real life and disasters over the long term.
Re-posted from: http://www.luckyladygames.com/