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T O P I C R E V I E W
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TheMoMan
Member # 1659
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 posted June 25, 2010 06:34
____ What a former mess.
http://www.businessweek.com/news/2010-06-25/biggest-wall-street-revamp-since-1930s-approved.html
____ Still a mess but it may be getting better.
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Ashitaka
Member # 4924
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posted June 25, 2010 07:09
What I want is less interconnectivity. By that I mean, if someone invests in say a solar cell company in california, and there is a drought in New Zealand and the price of wool skyrockets because a bunch of sheep die, I don't want the solar cell company stock to tank.
One should be able to research something and invest, and not have somethign totally unrelated ( say US housing prices) tank the stock market.
now if there was an earthquake somewhere and the raw material for the solar cells became less available, then I would expect the stock price of this imaginary company to go down. But I think the stock prices of companies should reflect the value of that company.
This is currently not the case.
I have no idea of how to implement this as stock prices currently are not based on actual value as the people buying the stock don't do enough research before purchasing. ( why do research when something totally unrelated is going to affect the price anyways.)
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Stereo
Member # 748
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posted June 25, 2010 09:53
What you don't want, actually, is speculation. That is people thinking that one event may have inexpected side effects on something that has no obvious ties; and people not buying on the value they think the stock should reach.
There is one solution. Make your own research. Buy the stocks you think are at fair value, and you think the company is doing fine; or underrated stock of companies that have been wrongly affected. And hold onto those stocks. Don't sell when they reach a "target value", sell when you do not trust the company anymore.
Of courses, at this point it's not called "trading" anymore, but investing. Depending on your local tax laws, you may even get a tax break from it. I know I could, if I invest in a small company, or one in a category the governement tries to get a critical mass.
So the solution should be: get rid of stock exchanges entirely, and just have some library that will give you the information you need to invest.
Ah. But it won't be popular, since that doesn't make people dream of quick riches... ![[evil]](graemlins/evil.gif)
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TheMoMan
Member # 1659
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posted July 01, 2010 18:22
____ Well Americans we got sold down the river again!!
http://www.time.com/time/politics/article/0,8599,2000880,00.html?xid=rss-topstories
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