Are markets zero sum game?

Discussion in 'Stocks' started by 931, Jul 23, 2020.

  1. 931

    931

    Are markets zero sum game in wider sence?
     
  2. newwurldmn

    newwurldmn

    No. Wealth is net created overtime.
     
    DTB2, 777 and murray t turtle like this.
  3. 931

    931

    Can you elaborate on how it's created and what gives it value?
     
  4. newwurldmn

    newwurldmn

    companies earn money so wealth is created. That comes in the form of dividends and higher stock prices.

    The stock market is just an attempt at figuring out the present value of that wealth creation. And a lot of the activity around that is zero sum.
     
    Nobert and 931 like this.
  5. guru

    guru


    Depends on who you ask. Ask Jim Simmons :)
     
    djporter91 and 931 like this.
  6. El Trado

    El Trado

    Also depends on the market. The stock market does create value as companies hopefully gets more valuable as time go (earnings).

    However, markets like the foreign exchange market is a zero-sum game. Each cent one participant gain must come from someone else's loss.
     
    931 likes this.
  7. 931

    931

    For example gov/fed symbiosis boosted some stock, taxpayer still loses value IMO.

    All real value has to be still created with actual work , robots or human no matter.

    Looks like zero sum to me.
    No matter how clever the scheme or how the channeling of value is directed.
     
  8. comagnum

    comagnum

    Zero sum game, meaning someone has to lose for another to win, only applies to derivatives such as options & futures. With stocks this does not apply, everyone could be profitable.
     
    murray t turtle likes this.
  9. Overnight

    Overnight

    Hmm, what about the XIV? When that collapsed to zero and was closed out, didn't Credit Suisse tell all the bulls they were TSOL?
     
  10. 931

    931

    Can't ask.

    He might think medallion fund is holy grail, but I doubt he will say it or what it feeds on.
     
    Last edited: Jul 23, 2020
    #10     Jul 23, 2020