Due to the No Arbitrage Principle, in theory, there should always be risk when you invest, however investing is seen as smart common sense which every adult needs to do whereas gambling is a poisonous addiction we need to curb, what’s the difference? To me, it seems that only when the market is exploitable and not fair, is there a true difference, apart from the immediacy of the results of many types of gambles vs the drawn out nature of investments
In: Economics
it depends on what you mean by “investing”. picking single companies has a lot more risk than buying the s&p500; but even the s&p500 has some risks.
stocks also arent lottery tickets; behind every stock is a company…….with earnings, expenses, sales, R&D and all that jazz.
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