2. Where do you think money will be optimally invested by a banker giving loans to business or by a stockholder buying equity in a firm?
They're supposed to be equally profitable.
Since 1802, the stock market has returned $600,000 after inflation for every dollar invested.
209 years to multiply your investment for 600,000 ?
Let's find the approximate interest..
1.0658 ^ 209 = 608449.62
So it's approximately a 6.58% interest rate. Are dividends that high? The stock market is probably a bubble.
Cash is not suppose to lose value either. The stock market is not undervalued since bond rates are so low. The stock market most likely will not provide same level of returns as last 200 years. However, at the present time bonds,bills, cash will all lose money to inflation and stocks might break even. That is the sad state when you hire orators to run the country as a front to the people that want to rob it.