I discuss how a short average holding period for stocks suggests that stock exchanges have become closer to gambling halls. We talk about how an investor who holds a stock for an average of 6 months cannot be considered an investor, but rather a trader, speculator, or gambler. We explain how this type of investment behavior leads to extremely high market volatility, and how it is similar to the behavior that preceded the collapse of the New York Stock Exchange in 1929 and the Great Depression, where the average holding period for a stock was around a year.
WhatsApp 0014702062832
Leave a comment