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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (25284)	11/10/2002 4:17:35 PM
From: Moominoid	Read Replies (2) \| Respond to of 74559

Well, while gambling at the casino's always have negative expected value [unless you're a card counter or whatever], investments certainly don't always have positive expected value. There have been plenty of IPO's over the past 5 years with much lower expected value than betting red or black on a roulette wheel. I think you're confusing theory with reality... known probabilities of outcomes vs not. Some specific investments for sure may have negative expected value for "investors" in them. I said "in general" like "on average". If you own capital you should expect to get some return on it. If you go to the casino you should expect to provide a return on the owners' capital. Unless you believe that the long-term rate of return on capital is zero or negative as implied by Jay in a recnt post. Maybe this explains the excitement about gold....