The Stock Market Is a Ponzi

Punzi Papers Essay 8: The Stock Market Is a Ponzi https://punziwars.substack.com/p/the-stock-market-is-a-ponzi

What actually holds up a stock's price? I can't be profits - most shares don't pay dividends. Instead, people buy stock only because they hope to sell to someone who will pay more than they did.

The price of an equity no longer reflects its true value, but is propped up by the psychology of the market, companies buying back their own stock, accounting 'trickery' too dense to read, and by the automatic retirement savings of a generation forced to keep buying no matter the cost. The "safe, sensible" index is the greater-fool game of this Ponzi at-scale.