Markets panic but still make money

Across the world stock markets are in panic. Panic is good for business as it creates the high swings in prices that enable dealers in the market to gamble with better leverage. Thus a bet will, if successful, pay bigger than if the prices swings were lower. After a day or two’s worth of panic share prices return, making us all wonder what was the point of the price variation, except to enable the market men to make money. However the problems may run deeper. Continue reading