If a baseball player is successful, the price of their trading cards goes up. Why? There's no concrete relationship between the two; the league doesn't pay the owner of the card per win. It just makes enthusiasts want to have the card to show off, and attracts speculators who intuitively expect the price increase they themselves help bring about.
In the same way, the success of facebook.com doesn't create any income for people holding FB shares, it just makes it psychologically easier to flip them. The price goes up for no better reason than everyone assuming it will.
The stock market has become a casino where self-perpetuating phantasms create noise that swamps the signal. I can't blame any company that fleeces willing speculators rather than try to sway value investors using actual yields. I'd love to propose a fix but I don't have one.
In the same way, the success of facebook.com doesn't create any income for people holding FB shares, it just makes it psychologically easier to flip them. The price goes up for no better reason than everyone assuming it will.
The stock market has become a casino where self-perpetuating phantasms create noise that swamps the signal. I can't blame any company that fleeces willing speculators rather than try to sway value investors using actual yields. I'd love to propose a fix but I don't have one.