{"id":71333,"date":"2023-08-11T09:07:11","date_gmt":"2023-08-11T08:07:11","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=71333"},"modified":"2023-08-11T09:07:11","modified_gmt":"2023-08-11T08:07:11","slug":"why-do-we-waste-so-much-money-on-the-financial-services-sector-when-they-deal-almost-excessively-very-in-failed-commodities","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2023\/08\/11\/why-do-we-waste-so-much-money-on-the-financial-services-sector-when-they-deal-almost-excessively-very-in-failed-commodities\/","title":{"rendered":"Why do we waste so much money on the financial services sector when they deal almost excessively very in failed commodities?"},"content":{"rendered":"

Time and again, commentators on this blog get angry with me for suggesting it is rational to avoid investment in shares.<\/p>\n

This morning the bFT agrees with me, via its Alphaville column.<\/a><\/p>\n

It turns out that over the long-run a rising tide has lifted far from all stocks. Like not actually lifted them at all.<\/p>\n

The median global stock as an investment has been worse than local cash instruments or dollars in a cookie jar.<\/p><\/blockquote>\n

That's a finding based on the work of Arizona State professor\u00a0Hendrik Bessembinder.\u00a0<\/a><\/p>\n

\"\"<\/p>\n

So, three questions.<\/p>\n

First, why all the nonsense claimed about saving in shares when most destroy value?<\/p>\n

Second, why the myth that capitalism works when very clearly it does not? The only companies that break the noted trend enjoy actual or quasi monopoly power.<\/p>\n

Third, why do we waste so much money on the financial services sector when they deal almost excessively very in failed commodities?<\/p>\n

It\u2019s time for different thinking,<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Time and again, commentators on this blog get angry with me for suggesting it is rational to avoid investment in shares. This morning the bFT
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