playing lottery vs stock indexes

[zrk]

playing lottery vs stock indexes

lotteries in general have a 50% return of money: if you play enough, youll get 50% of your money on tickets back with wins.

The major stock indexes have also had a 50% return since their peak. Turns out its just as effective to buy a ton of lottery tickets as it is to go into the market at the peak(and thats with a well diversified stock pool)

 

[Johnny]

Re: playing lottery vs stock indexes

The stock market moves up and down when you look at a small time frame but in the long rune it steadily rises and compensates for inflation since the money is not in paper form any more.

 

[Garbad_the_Weak]

Re: playing lottery vs stock indexes

The stock market moves up and down when you look at a small time frame but in the long rune it steadily rises and compensates for inflation since the money is not in paper form any more.

Past Performance Does Not Guarantee Future Results. I'm -70% from peak. =/

 

[dune6836]

Re: playing lottery vs stock indexes

if you buy a lottery ticket and you dont win you lose the stake forever.

if you buy a share in a quoted company it may rise and fall with time and you may be able to sell it for a profit and buy it back later to increase your capital holding.

the company may pay a regular dividend on your investment, providing you with an income.

you wont loose all you money unless the company goes bust. if the shares fall it may be an opportunity to buy more, if the company is sound then in time the shares will advance in value.

this is a very large subject

in general terms now is the right time to buy into large, well run companies with a 2 or 3 year investment view.

 

[maccool]

Re: playing lottery vs stock indexes

The stock market moves up and down when you look at a small time frame but in the long rune it steadily rises and compensates for inflation since the money is not in paper form any more.

Hilarious.

 

[BobCox2]

Re: playing lottery vs stock indexes

lotteries in general have a 50% return of money: if you play enough, youll get 50% of your money on tickets back with wins.

The major stock indexes have also had a 50% return since their peak. Turns out its just as effective to buy a ton of lottery tickets as it is to go into the market at the peak(and thats with a well diversified stock pool)

If you put all you money in at the last peak by definition of what a peak is your a behind, on the other hand if you put the amount of money you spend on lottery tickets into a stock index fund each week since the last peek some of those investments are ahead and some are behind now, and in the long run dollar cost averaged your going to be ahead when it hits its next peak.

 

[tarnok]

Re: playing lottery vs stock indexes

The plural of index is indices.

Even if Firefox's spell checker doesn't like it.

 

[PFSS]

Re: playing lottery vs stock indexes

The major stock indexes have also had a 50% return since their peak. Turns out its just as effective to buy a ton of lottery tickets as it is to go into the market at the peak(and thats with a well diversified stock pool)

Hindsight investment FTW!

If you plan on investing your money to lose 50% then you may wish to re-consider your investment strategy.

If you are currently planning to invest then based on this 50% the dow will have to fall to about 3500 before you lose 50%, and even then you will still have assets rather than several useless pieces of paper (unless the companies you invest in fold... in which case you will be in the same place as if you brought lottery tickets and got an average return).