How to pronounce “stock market” in English

mistake that many, many people make. A lot of people don't invest in stocks at all, and a lot of people who do invest in thestock market don't invest enough in stocks. They have very conservative portfolios. And that has a very largeimplicit cost. By not participating in the stock market when you could be, you're giving up a huge amount of of economic gain.

Alternatively, you could have rented the house. That 20% that went into buying a home could have been invested in thestock market. So again, we're back to the idea of opportunity costs.And the other important thing here is that renting typically has lower cash flow costs than owning. So these are the

Stocks have far outpaced inflation. So by having money sitting in a house as opposed to invested in thestock market, you have what is called an opportunity cost.You're not earning returns you could have otherwise been earning.

And then on a Tuesday morning, think about an environment-- let's say, 2011.Stock market is different.

It was not registered, but was certainly severe.Stock market almost down by half commodity.Prices down by 40 odd percent.

It's, in fact, close to the legal limit, which is 8%, a year before the bank collapsed.Stock market virtually disappeared.

those who had jobs would have maintained their higher wages, but at the cost of greater unemployment to a largerStock market's not Keynesian or monetarist or anything else.

those who had jobs would have maintained their higher wages, but at the cost of greater unemployment to a largerStock market goes up because you stopped the inflation problem.

And there's a notion that there's a lot of cash on the sidelines in the marketplace, and that's going to drive thestock market higher. I would argue that that's not going to occur.You have to remember that this was during a once-in-a-generation bubble period that occurs about once every 25 years.

say there's a period and this is a period from 1988 that this was the DALBAR Study to 2007. So, it did go to the top of the market. It's not, this is not indicative of what thestock market is gonna do in every period. You had an 11.6% rate of return.But if you look at how the average investor did realizing that the average investor wasn't

And again, the reason that we were so foolish is because the Fed was too easy during the 1990s. Greenspan blew up thestock market bubble. It's because of the Greenspan Fed that the NASDAQ went to 5,000. That we made all these foolish investments in the first place. But whenthat bubble burst and George Bush came in, we should have had a very severe

US government has nationalized major financial institutions has put short sale constraints to try to prop up thestock market uh they've compromised our basic capitalist institutions in aneffort to deal with this crisis which seems to be getting more and more severe

Price Index to a real index and you can see what's been happening in China thestock market was uh just uh you know drifting along here uh and then around2006 it went up five-fold and then bang just look at that you know we teach our students

has to do I think with an investing culture that developed during the 90sstock market and a sense that people of people's personal identity as investorsand a sense that uh well the stock market didn't do so well but there has

So say I have $10,000 uh and I invest it inthe stock market, and I'm getting what did you say, 8%? 7 Say 7%.How much money is that?

Well, the numbers, I think, don't tell the whole story.The stock market is at record highs.Unemployment is near record lows.

Let's talk about the tough moments because it's 2000, 2001.The stock market goes down.There's no funding. By the time, there was not a lot of believe into online advertising, right?

When in reality, it isn't that complicated.The stock market is a beauty contest, that's really a criticism that economist John Maynard Keynes levied on the stock market, or on Wall Street.And it's really this idea that a lot of investors, and even professional investors, will choose companies

In the '70s, the US had double digit inflation.Their stock market off the bottom.

So yeah, the idea of the future is a work in progress and it changes and it is of course exactly what drives the stock market.The stock market is simply a, it, it, about the values of hope and fear.Richard Gingras: That's an interesting and keen observation.

the stock market. And just last week I read another $5 billion was withdrawn

the stock market is always going to go up. We used to have the belief that homeownership is the best choice for everyone. And, I think, more and more people are looking at that and

like stock market. When you look at the screen, you know the screen, the stock market's like this, yeah? There's two line like this, and one line is what happening in your brain;

for those of you who are getting closer to retirement, that's why you have target-maturity funds that in fact make sure that you're not at a time at the end where everything's inthe stock market when the stock market might be, might be low and the target funds do exactly that for you.Now, the other thing that is I think a timeless lesson is to rebalance, and I say yearly.

estate in one city okay and leverage it up 90% or more now if you did that inthe stock market if you told your friends I'm G to buy uh one Company's stock and I'm going to margin you can'teven do it it's not even legal to margin it up 90% that's the legacy of the Great Depression when they said we won't let

they way outperform the stock market, let's say, let's just accept that body of research that says public pension funds do better through private equity.

money in the stock market and that company and so on, you're going to spend less. And as you spend less, then

It is far from unprecedented to have these major declines. And the biggest bubble in historywas in the Japanese stock market in 1989. Back then Japan seemed to rule the world, all the technology, all theToyotas were kicking bottoms in General Motors and so on.

portfolio and it's down 5%, up 6%, and going up and down all the time, that can be very stressful, and it makes it seemlike the stock market is very risky.And so, people will invest less in the stock market. In reality, for for long-term investors who can invest in stocks, buy and hold for a very long

Opportunity costs. So that's what I just mentioned. Whatever equity you have in a home is equity that you could have otherwiseinvested in the stock market. The capital portion, the principal, the the price of homes has increased aroundinflation at the rate of inflation, maybe a little bit higher historically.

Like what does the stock market ecosystem look like?

It's because the stock market, if you look at expected future earnings, is taking into account, to some degree, all of the technological innovation that's happening right now,

where the stock market is going next.

in the stock market, and you lose a TWA or a Lehman Brothers, et cetera.

that's not the stock market.

years this stock market crash almost took out the father of value investing

remember that this stock market crash occurred with runaway inflation Skyrock

measure of the stock market uh what's the fundamentals there a laot of analysis goes into that so I'd say two

It's had the stock market.

As the next stock market crash will show, the typical investor who believes himself to be a bull will turn out to be a bonasus.

of the stock market has put the small investor at a disadvantage because he can't compete.

I like the stock market.

And just like the stock market, you can't time too well.

Making money in the stock market used to be the province of experts.

for commenting on the stock market or something like that.

And the stock market fell dramatically, but there were active scenarios for the financial system going into sort of a freeze.

But that's really not how you can be successful in the long term.And by viewing the stock market as a parimutuel betting system, we're getting a little bit closer to the essence of it.Because really it's not about guessing the prettiest face, or the best company, or what others will think-- because if there is a company out there like Google,

What becomes harder is calibrating that judgment versus what you have to pay to actually buythat company in the stock market.So as Warren Buffett's partner Charlie Munger says here in this quote, sometimes it's just really easy to see which horse is most likely to win a race,

And now what we're talking about here is we're looking at the business itself now.Forget the stock market.We just want to know how good is this company.