The Stock Market Is Not the Economy, Crooked Wheel Dept. 0
Drew Magary took a flyer on the Robinhood app and ended up with very little john, which led him to form a theory about how the stock market works is worked. (Warning: Language.)
Individual stocks may go way up or way down, but the market itself only knows one trajectory. They’ll never let the whole market sink even if certain stocks eat curb. When the pandemic hit, what was the first thing legislators worried about? It wasn’t you. It wasn’t your favorite mom-and-pop pad Thai joint. It was the market. Who’d the legislators bail out in 2008 when the banks collapsed? Not you. The banks. Why? To keep the market up. They’ll never let it fail. All of their interests, regardless of party, coalesce within it. Hence, the average American’s best way to survive the vagaries of the market is to invest in ALL the corruption, not in bits and pieces of it.
That means index funds.
