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
Investing is gambling. However, the nature of the game is different. When you gamble, the casino sets the odds so that they will pay out less than they take in. Some people win, but most lose. With investing, the general trend in stock prices is up, because almost everyone involved benefits when stock prices increase.
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