> >>> The Stock Market is no less rigged against the small investor
> >
> >> Yes, it is (LESS rigged)
> >
> > Hasn't there been a wave of despair some years ago in the USA where
> > many people lost pretty much all their (in some cases
> > retirement) savings in the stock market?
> >
> I meant primarily that the stock market isn't "rigged" to
> favor anyone, not that it wasn't at all risky,
> Statistically, stocks go up
> (and down, but mostly up) for everyone equally.  If you're
> counting on the sort of advantages given by brokers to large
> traders (I don't deny such things exist), you're not
> investing appropriately, you're following some weird scheme.


The stock market is just gambling for people who don't like horses,
greyhounds or flashing lights.  Someone did a study of fund managers
recently, in the long run it all averaged out, there were no clear
'winners', ie funds where skill rather than luck showed up.  They get
lucky, advertise that as skill, that attracts more investors, which slows
down the fall back to where they started.

It's a bit easier to rig the stock market than a casino.  That's everyone
from the idiot "hot stock buy now" spammers, inside traders, and deBeers
stockpiling diamonds.  Who was it stockpiling silver in the 70's?  Holt? 
Hull?  And the price of silver has been going up... quick, buy mining
stocks!  The world can't be out of suckers yet  :)

My favorite was a stock market game run by a former employer.  Basically
you played the stock market with pretend money, best overall gets some
real money.  When we took it over, the rules needed to be changed.  Rather
than allow trading on all companies listed on the market, it was
restricted to the top 100 or so.

Why?  Well, the dealers figured out how to rig the game.

They'd pick a penny stock, and buy 1,000 shares in the game.  (Trades in
the game always went thru, unlike real life).  Then they put out a buy in
the real world, saying they wanted 1 share for $1.  Straight back to the
game, and immediately sell their 1,000 shares for $1 each (courtesy of a
live data feed).  $10 converted to $1,000 in 15 seconds.  Then they
cancelled the buy, if they were unlucky they'd get their order filled, so
they out of pocket $1 + brokerage in real money.

Lather, rinse, repeat!

Tony


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