Sequence of events

The stock price of companies used to be underpinned by their ‘inherent value’ but that has changed for a number of reasons:

1. Complex financial systems has enabled people to make money off all forms of derivatives, many of which are not tied to actual company value. Otherwise known as gambling.
2. All that global productivity has ironically lead to an excess of capital available for gamblers

Put these two factors together and you have a formula for chaos in the markets. God help those poor CEO’s who just want to strategize, plan and report their good efforts. No one seem to cares.

Who cares about dividends when one gamblers gain is another’s loss. Of course all these gamblers think they have a special angle, tools that give them a % edge of the rest.

Query is whether the average return of all players is negative or positive? It depends on the cost of money, which is pretty cheap the the moment since the US has discovered it can make as much money as it likes, without destroying its economy. Surely a short term proposition that!