this post was submitted on 13 Feb 2024
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Nah, The Stock Market is basically gambling, just - it's result time is measured in days, weeks, months, and years, depending on the investment strategy you are after.
When you get a state where a group of people have a TONNE of money, and want to put it somewhere to avoid it depreciating to inflation, that money gets put into whatever the considered safest bet is. The issue is, when you have only a handful of big safe bets - those end up being the option everyone dives on, leading to overvaluation relative to the actual performance of the company. This is what leads to future price corrections.
Companies doing hedging and so on are just a part of the puzzle.