The idea behind stock used to be medium- to long-term investment – buying a share of the company and taking a share of its profits as dividends and of its growth in the market (which would be reflected in relatively slow stock price increase).
These days, people have instead been sold on the market at a pure gambling game, and want to get the money instantly. Which all too easily leads to an emphasis on stock price at the expense of actually looking after the best interests of the business.
Not healthy for the businesses, or for the economy. Or for the investors, unless they’re lucky enough to get out before the business falls over, or have a long enough horizon and sufficient diversification to accept the higher risk.
I really hope we’ve got another few decades before the next shoe drops, and that it doesn’t drop into the gears.
