Infinity asked in Social ScienceEconomics · 4 weeks ago

Would the world be a better place if everyone publicly recommended what stocks to invest in?

For example, one person recommends to short sell GE. Another person recommends short selling Kraft. Would the world be a better place if more people made such recommendations?

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  • 4 weeks ago

    No, it would not be. If that were the case, everyone would be on the same playing field. There has to be winners and losers for society to function. There’s no such thing as a free lunch.

  • 4 weeks ago

    What good would this do??  Most joe & jane six-packs aren't experts in the picking of stocks.  

  • Oiy
    Lv 4
    4 weeks ago

    No, not at all. The story from mouth to mouth will force the trade in the wrong direction. It's too simple. I said you should short sell GE because I will get in and buy the GE at the lowest price.

    • Infinity
      Lv 5
      4 weeks agoReport

      Yet, the overall story, which has been published extensively for years, is that GE is imploding.

  • Zirp
    Lv 7
    4 weeks ago

    The world would be a better place without investment-games and speculating.

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  • I am not much of an economist, but commonsense is inclining me to think that wouldn't be a good thing. If every one had interest in one stock, the stock value would decrease. Why? Because the more people with interest, the greater the demand, the lower the value. I don't know if this is true or not, but it is what I am inclined to think. There are few smart guys over in the economy section that would be happy to make sense of this for you.

    One thing that I think works when it comes to investments is having a knowledge of what is going to be in HIGH demand in the near future. I have never had enough money to invest in anything other than myself. But if I ever came up with enough money, I would talk to investors and try to understand which investments would be the best. That's my two cents.

  • 4 weeks ago

    1000s of people are making those recommendations every day.

    • Infinity
      Lv 5
      4 weeks agoReport

      How many of them are acting in good faith?

  • Anonymous
    4 weeks ago

    Of course not.

    Selling short is a gamble on the future of a stock to go down.

    It can either be correct or it can be wrong. But it can also *drive* the loss, by making people think that the company is in bad shape where it may not be, and ends up hurting the company.

    Now, either more people make the same recommendation, or more people would make different recommendations. If people make contradictory recommendations, it would be the same as if no one said anything, because you'd have no way of knowing who to trust.

    And if everyone made the same recommendation, it would be like knowing in advance what numbers the next lotto draw would be, so that everyone would play the same numbers, with the result that the $1 million prize would be divided among 2 million people, therefore earning 50 cents while the ticket was $1.

    You did not really think this through, did you?

    You must be a Trump supporter...

    Edit: what is your point? If GE and Kraft are going down, and everyone sells short, no one will be buying. It is like trying to sell losing used lottery tickets; no matter how cheap, it would be too expensive.

    • Infinity
      Lv 5
      4 weeks agoReport

      Kraft and GE have very bad balance sheets. It's almost impossible for them to turn around.

  • Anonymous
    4 weeks ago

    The stock market is a cutthroat place full of liars, manipulators, and would be pirates, do your own due diligence or stay out of the market.

  • 4 weeks ago

    That recommendation will come a day after the real players have ALWAYS received that news.

    • Infinity
      Lv 5
      4 weeks agoReport

      Warren Buffet himself won a bet that indexes would outperform Hedge funds in 2007-2017. Perhaps a more open dialogue is what's needed.

  • Anonymous
    4 weeks ago

    🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡

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