Investing vs. Speculating

Posted on December 6th, 2009 by admin in Political Economy

Doug Casey, founder of Casey Research has a great definition of “investing” and “speculating”:

“Investing and speculating are widely confused. Investing is “to allocate capital into productive activities with the anticipation of operating profit.” Speculation is “to allocate capital in order to profit from politically caused distortions in the market place.”

If you can think of any counter-examples, please let us know!

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