OPINION : " Gambler's Den and Market Makers. Should we encourage gambling?"

As we know, a stock market performances  is a story-telling driven assessment of how one country prosper in term of its economic growth, demographically and macroeconomically, respectively. This can be looked upon the statistically-collected and and a division of data that used for the investment industry to runs its performances benchmark for an investment packages that they offered from their investment or brokerage fund. In this case, if you already understands how the indexes is used to benchmark the current economic situation or how to read its encrypted messages based by the collected of data through many division of either indices or individual sets of main market index, you might able to explore some of the ideas that I'm going to explain here.

Whether this kind of opinions, or ideas, should ever be taken seriously, bear in mind that some of the aspect might stir a controversy or uneasiness toward a public opinion. But for least, I try to explain the best as to why, this might not sound not too much differ than the reality that we already living in.

As for the subject which  revolves specifically around social science of economic ( I'm a graduated students on this subject so that’s how I understand it thoroughly) so some of the readers might find it completely a confusing opinions to be had here. But anyway, I'm going to move on with the ideas and the infographic so some casual readers would able to grasp some of the economic sense and how the ideas worked.

Simple infographic of how primary and secondary market work and their specific characteristic on advancing the movement of indices and market's monetization opportunity.

If you really see it, you might realized that the gambling behaviour indirectly encouraged the market confidence itself. The trickle-down effect afterward might spurred even more confidence in more than just a highly-structured market, but also psychologically.

Let's think about this. Our day-to-day life is by itself, a prospect of gambling toward uncertainty, but we still deal with it, nonetheless. Imagined that the day of your business plan and models might won an institutional investors heart's that they loved it so much that for whatever risk it takes they would like to have a good bet with your ideas and vision's prospects. Doesnt that also indirectly a "gambling"? How could they really guarantee that your grandeur of ideas is worth investing? But thats the animal spirit that spurred an incentive for us to move on with such risky endeavour. For what it worth the world of economic is basically a "wide-open casino, played by everyone, indirectly from all walks of life".

That's how financial world's by modern economic forces works its way to power the society. Insurances betting on your misfortune for a game that they would assure that you would "never going to win as a risk upfront is too big for you to partake", hire purchase made by bank when they approved your big purchases is signed with promisorry notes thats clearly showed their intention to do a betting game upon your capability to pay them back with certain upward of percentages of original purchases so they could call it a business, a deal between you and your friends for whatever rewards it takes. More or less, its an every little bit of what would be constitute as a gambling, informally or formally.

When the common stocks market moved to the trends of bull runs (when market rushed up with buy-in that a shares of one company is on constants in-and-out of buy order that increase its prices) usually its a sign of casino is going at full-forces. Total market's wealth also rising in correspond to the euphoria created by such atmosphere. This in orders, created even more confidence for market participants to fork out even more of their capital, due to the optimism of such conclusion made by the components of market's indices that rising upwards.

When market marching upwards by its components lists, it also a compilation of compiled stories based on each categories of market performances across the country. It sort of a simple "condensed formulas" of what would be the best signals for investor to pour in more capitals in those sorts of economy sections. When the foreign investor sees the confidence that being made around the stock exchanges of one particular country thanks to the risky appetite of traders and big fishes that chases for the monetization of opportunity by the eventual shortages of markets due to the supply-and-demands that driven by craze of upwards trends, the gambler's den would be the catalyst that would insist and spoke to the financial players on whether or not such investment opportunity is wide open or market could be made.

On gambler's den, the risk of self-driven incentive is always the first and the benefit to the others is another day's concern. But the forces of economy indirectly benefitted us all.

Let's consider this scenario by the mean of stock market on bull run. When the statistic of market indices is moving upwards and exceed the expectation of invesment or brokerage houses, it would spur a market wealth. Market wealth increase public confidence, inside and outside of the country. More foreign inflow goes in. Official reserve by Federal Reserve now is ready to defend its legal tender or notes (bill) of currency to better protect its values so the domestic market wouldnt be affected by depreciation out of market downturn, if any. All of that would lead to market euphoria. Euphoria would mean more spending on domestic levels, boosting the local currency appreciation, and banking institution would eager to cooperate with any individuals that requested for capital assistance, since market confidence is running at all-time high. Betting on hopes to win any prospect is made as "guarantee" with the bull runs made by the stock markets, which signalling optimism for wealth to growth is certain. Everyone is on for the games, by the incentive it made, for monetization it places, to the guarantee that it reflected.

So, let's take a look at the compiled statistic of highest stock market's capitalization by global ranking based on trillion of USD worth of stocks values on its components indices.

Source: www.statista.com

For sure there always be a winner and a loser in the market, but what's the similarity of the top-3 stock exhanges on the list that had their fair-share of "values" that is a core for their accumulation of global weatlh in term of capital values that exceed a trillion of dollars?

The answer is simple : "The culture of gambling."

It never a surprises to see that those top-3 on the list are a nation that sort of ingrained with gambling cultures as parts of their sociograpic aspect. Las Vegas and Macau, Keirin and horse betting are the hottest public's craze in those Top-3 country after all. (NYSE and Nasdaq are parts of United States official stock exchanges, while we consider the Hong Kong and Shanghai are on the same group due to ethnocity-based, as for assessment for this subject discussion)

It also not really a surprise to see the country that had the strict or had less encouragement of gambling institution, or more "nicely worded", risk-taking behaviour that is moulded as a part of cultures of its citizen, had a mediocore or average performances of market capitalization in term of total values of capital market's worth versus Year-to-Year or Day-To- Month performances basis.

So, to wrap up this "spicy" write-ups, do you think it might be a good moves to have a more "lax" regulation on gambling or gaming institution to encourage a "good" gambling behaviour toward more strong uprising of local capital market or this is just co-incidence of pure demographic and sociographic context?