Dow earns 350 points with the height

The future of investment in the stock market is not the stock market.

Monday, Robinhood (Cabbot)) Declare It was launching the prediction markets, allowing users to circulate the results of events, with the Federal Reserve meeting for this week and NCAA championship as the first two markets at launch.

Last month, readers may remember, the company sought to release bets on Super Bowl however I pulled this plan later.

A month later, the company appears to have an answer to the organizers.

The company said in a statement on Monday.

“We have been in close contact with CFTC over the past few weeks and we look forward to continuing to work with them to enhance innovation in futures, derivatives and encryption markets.”

So with the decrease in regulatory machines and the company finds a better partner for its latest initiatives outside the stocks, Robinhood appears to indicate that the future of investment in the stock market is actually sports betting.

Matt Levin was also written in Bloomberg in February:

There are two basic types that one can use when investing in the stock market – no one knows anything or everyone knows everything.

Both of them, which has been transferred to the maximum, constitute support for companies to do what most research that most people should do with most of their investments: prepare them in a low -cost index box and then do something else with their time and talents.

For professional investors, both models also provide many reasons for trying to overcome the market. Certainly, everyone cannot know everything, and someone should know something. Why not for us?

But for both the retail investor and the companies that serve them, a regularly enhanced message that the best way to do something with your money is not to do anything in the end, you will not see these relationships in both directions.

Companies cannot obtain and rely on users to stay customers within years of failure to work. A few customers will remain of any work, regardless of what they suppose doing with the product, as such if there is no reason to remember that they are a customer.

All of this helps to determine the attractiveness of prediction markets as a medium -sized floor.

They are quickly. They are separate. While the leverage can be applied to any bet in creative ways, there is no (at least not yet) to these derivatives.

There A paper argues for the value of the offer Robinhood writes that the prediction market contracts, “a mixture of risk mitigating, collecting information, speculation and learning capabilities makes prediction markets a valuable economic and media tool for companies and individuals alike.”

Which, definitely.

Speaking of the things that everyone knows, the modern American economy is very financial, but most participants are unable to hedge their dangers. (As a W-2 employee with a real estate mortgage and 401 (K), I have already recognized my local housing market, the online media industry, and the American stock market.)

Therefore: Does this new product change the side appearance of the risk of the majority of Robinhood users, who are likely to be exposed to the same financial authorship of this post? Maybe not.

But what is indicated is that the role of the stock market in the efforts of the average person to improve its financial position or remove the risk of its financial assets is likely to decrease over time.

“Democratic character” to things like private stocks and investment capital commensurate with this bucket, of course.

Yes, yes/no, on all the 67 games that will be played in the NCAA championship, do not scream exactly.

The stock market is often discussed as a problem that has been solved – like a baseball game, with its three real results – but if the correct procedure is known, as mentioned above, is the purchase of the basket and not doing anything, then both the commercial strategies and biases in the human nature towards the work should be diluted in one way or another.

At least the sport is fun.