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Keywords:putting money investment account bank different from buying lots lottery tickets
Last Date:2012-01-24

Question: How is putting your money in an investment account in a bank different from buying lots of lottery tickets?

is a lottery pool really any different than the stock market?

how different and why?

are both dependant on what and why only a few winners? is there any othe rway?


Answer:

the stock has its ups and downs....
buy on its downs (2001, 2008) you could turn that into a big profit in a few years.

I've noticed that a lot of your questions make imply that people don't make their own choices and are pushed into them by other people for unscrupulous reasons.

My experience has taught me that the majority of people make their own decisions, especially in regard to their finances, and are not pushed into investing money they don't want to. Nobody can give you their reasons, only the individuals can do that.

The Lottery is just that - a lottery. The likelihood of losing ALL of your investment, is much higher than in an investment account. An investment account should be looked at in the much longer term, where it will almost always ride out the storms such as the current recession. In fact, a recession is the best time to invest, as shares are lower in most sectors, so the chances of higher gains over the medium to long term investment, are much greater.

You are a very stupid person. Very dumb. Incredibly dumb,

Let's see - a lottery ticket has a decidedly negative expected return (you don't know what that means because you haven't been to school). An equity investment has a decidedly positive exxpected return. An equity investment finances the means of production of all the goods and services we consume. A lottery ticket is the way that dumb people are taxed by the govt for being dumb.

In the lottery you have no guarantee you'll win anything. If your number comes up then you win and in most cases you won't. The odds of winning the lottery are very small.

The stock market is much different. For those investing on their own the chances of making money in the marekt depend on your choice of investments. If you examine all the information and invest based on that then you stand a good chance of making money more often than not.

If you're using an investment advisor it depends on the investment advisor's ability to choose investments that are more likely to gain than to lose. There is actually a greater chance of winning through investment than there is through playing the lottery.

Invest in fine art by a known artist.

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