cache landing, you are absolutely correct as i try to explain to the dimwitted... if the stock market goes down 20% a year for the next 10 years it's still not zero sum people who are arguing against the stock market being zero sum don't understand what zero sum means people who are arguing that wealth cannot be created in an economic system, don't understand economies. and of course this can be disproved thusly is there more (or less) wealth than there was 200 yrs ago in the USA? worldwide? if so, wealth can be created and destroyed. futures markets cannot do so. they can only transfer it because all net gains are offsetted by net losses nimrods above think if u buy ABCD at 5, sell ABCD at 10, and it goes to 20, that is a "net loss". lol
no, you don't if i am hedging a position in the cash market, with a futures position that says nothing about the futures market being zero sum it means that if you COMBINE a zero sum market and a non-zero sum market you get a non zero sum market i'll make this math easy for you zero sum market + non-zero sum market = a combined non zero sum market zero sum market + zero sum market = zero sum market non-zero sum market + non-zero sum market = non-zero sum market the issue here is not about intermarkte positioning. it is about the structure OF individual types of markets futures markets are ALL zero sum the combined market of all zero sum markets is a larger zero sum market anytime you introduce a non-zero sum market and aggregate it with a zero sum market, the aggregate market (the set of submarkets) becomes nonzero sum
Eventually they will read up a bit on game theory and realize where they went wrong. Don't worry about it, you've done your part to educate. The interesting thing is that if you start a debate about whether or not the market is a losing game, the thread will die after a day or so, and that point is actually debatable. But, you start one on a point like this that is not even remotely debatable and everyone keep trying to prove it wrong. LOL
can i repeat my senior year of high school if i could go back with what i know now, i could rule them like a colossus of yore
I don't know why you quoted me. The argument at the time was about wealth creation. I was pointing out that the futures market is not zero sum when you include the cash market, much like the stock market is not zero sum when you include the company that sold the stock in the first place. The commercials and the companies do not LOSE money when the price of the contract goes up. You laugh at people for not reading and understanding, and then you don't read and understand.
"futures market is not zero sum when you include the cash market," well... duh the FUTURES market is zero sum the cash market isn't when you combine one with the other, you get a non-zero sum market my weekly poker game is zero sum when i combine it with the economy of ecuador, it's non-zero sum