Original article published on the 28th January 2011 by Juan Ramón Rallo

Following on from our recent discussion about the viability of the stock market as an instrument of long-term investment, another one of the objections that usually comes up is: “Not everyone can win in the stock market”, “If somebody wins it is because he bought cheap from somebody or sold high to somebody else, and therefore that other person is losing”. This fear is a reflection of the widespread mercantilist view that the economy is a zero-sum game. But over three centuries it should be obvious that, thanks to economic growth, all members of a society can win. So why then do they not understand that every investor can win in the stock market?Continue Reading

Original article published on the 4th February 2011 by Juan Ramón Rallo

The stock market is considered by the majority of the population to be one of the riskiest investments possible. People who do not give a second thought to playing football pools or the lottery every week are horrified at the thought of somebody being so suicidal as to invest their savings in the stock market, the casino of all casinos.

The fear is understandable. But is it true that the stock market is really that risky? Continue Reading