Is the Stock Market like a Vegas Casino?

"You might as well go gamble in Vegas..." says someone referring to the stock market. I hear people say things like this all the time. I don't like it. Is investing in the Stock Market actually like gambling in a Vegas Casino? Let's find out together... with some chuckles along the way.

 

here are just two examples of why people might think this

  • You buy Nvidia Stock because of some positive news headlines...

    • 2023 - The stock is up over 200% on the year as of July 13, 2023. JACKPOT!

    • 2022 - The stock price dropped by more than half, down 61%, by October 14th. DISASTER!

  • You inherit $1mm dollars and invest it in the Vanguard 500 Index Fund on February 19th, 2020

    • 34 days later... your $1mm dollars is now worth $662k dollars.

 

I could give a gazillion examples like this... that's dramatic... maybe 1 million examples.

I actually understand why some people might think the stock market is like gambling after experiencing some poor fortune due to bad timing, a lack of understanding, or a combination of both.

With that said... I'm here to tell you, the stock market is nothing like gambling in a Vegas Casino.


CASINO ODDS (HOUSE EDGE) IN SOME OF THE MOST POPULAR GAMES

Blackjack (if you're good) 0.28%

Roulette (single zero) 2.7%

Roulette (double zero) 5.26%

Craps (any craps) 11.11%

Slot Machines 35%


THE MORE TIME YOU SPEND IN A CASINO, PLAYING AT ODDS NOT IN YOUR FAVOR, THE MORE YOU WILL LOSE

The commercial gaming revenue reached an annual record of $60.4 BILLION in 2022

The Casino's gains are OUR COLLECTIVE LOSSES.


consider the following odds of the stock market

In the last 30 years, the S&P 500 Index was only negative in 6 of those calendar years.

Said differently.

In the last 30 years, the S&P 500 Index was positive nearly 75% of the time in each calendar year.

In the last 30 years, the S&P 500 Index has averaged 10% annually.

If you invested $1mm dollars, earned 10% over 30 years, you would have $16,449,402 in your pocket.

 

WHY THE STOCK MARKET IS NOTHING LIKE GAMBLING IN A VEGAS CASINO

The more time you spending gambling in a Vegas casino, the less money you will have.... STATISTICALLY

The more time you spending invested in the stock market, the more money you will have.... STATISTICALLY

 

Sources & Disclosures found in the video link on Youtube