[permaculture] Re: permaculture investing & stock markets

Marimike6 at cs.com Marimike6 at cs.com
Mon Jan 5 11:02:08 EST 2004


In a message dated 1/4/2004 7:32:42 PM Eastern Standard Time, 
kfinigan at spots.ca writes: 
> 
> When "investing" in the stock market, 99% of the time, no investment is 
> ACTUALLY made in any company - you simply pay the current owner of the stock 
> 
> and you (in theory) get the stock certificate. The PREVIOUS owner makes all 
> the money (i.e. you are actually investing in him/her). The exception (about 
> 
> 1% of stock trade values) is an Initial Public Offering - when the company 
> first issues a set of shares/stocks. In this rare case, you can 
> actually "invest" in the company, giving it seed capital for some work you 
> hopefully believe in / are excited about.
> 
> AT ALL TIMES, you are buying something that must be sold to somebody else 
> (occasionally the company) to obtain value yourself (a few companies issue 
> dividends these days, but these are usually small). HENCE, to get 
> your "investment" back, someone must be convinced to buy your investment at 
> a (hopefully) higher rate. Your profit comes after clearing all charges for 
> commissions, management fees and capital gains taxes.
> 
Excellent point. Excellent.

I would add one other point. It's interesting that the market analysts don't 
track the amount of money coming into and leaving the market each day. Sure, 
they give you the volume, but that's not much of an indicator. The important 
number is how much money is cashing out, and going elsewhere, as opposed to how 
much in new savings is entering the market. This is a broad indicator of 
whether stocks in general are being over-valued (inflated into a bubble by more 
money than they're worth) or under-valued (in a slump like 2003, where there is a 
lot of money that has been taken out for other purposes, or has simply 
vanished into thin air).

We should keep the money we have within the community, by investing only in 
eco-firendly enterprises. Look for green funds, so your savings don't leave the 
community.

This is like a small town. There is only so much money in it until somebody 
visits on their way to the beach, stays in a motel and eats dinner. Then there 
is another $75 in town, to be traded back and forth between the butcher, the 
baker and the candlestick maker until somebody uses it to buy something made 
outside of town. Buy stuff at WalMart and your money goes straight to Oklahoma, 
and into five of the ten deepest pockets in the USA (the lovable Waltons).

So please all, look for "family" investments. 
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