Wednesday, March 22, 2017

"The Stock Market ILLUSION Explained"

"The Stock Market ILLUSION Explained"
by Mike Adams

"Almost no one really understands the basics of how the stock market works, and they suffer under the illusion that EVERY stock share is worth the same price as the last share that was traded. (If you’re confused why this isn’t the case, you’ve been lied to… watch the animation below to learn the truth that Wall Street doesn’t want you to ever realize.) Thus, in a rising stock market bubble, people who hold shares that were purchased at far lower prices suffer under the illusion that all those shares are “worth” the current high price.

As my animation video reveals, that idea is nothing but illusion. In truth, share prices are only transmuted into real wealth when they are SOLD. Yet it is impossible for all the holders of the shares to all sell at the current price for the simple reason that selling shares causes their price to fall. Thus, the mathematical reality is that all the outstanding shares of any given public company are really only worth a fraction of the current market price. This is easily demonstrated in any given market correction or crash where share prices plummet. Ignorant investors falsely believe their “wealth” is being “destroyed” when, in reality, that wealth never existed in the first place.

My mathematical animation, below, reveals the truth about the stock market that no one on Wall Street dare explain… or the entire Ponzi scheme would unravel overnight…"
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1 comment:

  1. A somewhat quaint way of looking at the market. One realizes gains in real value by selling shares, capturing the difference between buying low and selling high (higher than purchase price). While pinning the blame on the media, and rightly so, he does little to delve into that realm and inform readers how to use his information to their own advantage. All he really says is Stock Market = BAD!

    It is gambling. It is sanctioned by Congress. The SEC sets up the rules to favor the house. And the house always wins. Brokers get paid whether you, the investor, win or lose. There is no correction for poor performance (losses). But the hard part is knowing when to pull the trigger. Everyone is always waiting for the right time to "sell." Everyone wants to be the one to sell at the peak. To me, that is the real illusion ... the peak. The peak is always moving and you have to pick your time according to your needs. Either you make the decision or the market will make it for you.