Emergence of Capital Markets is like the emergence of a neural system communicating with cells via electric signals instead of slow chains of chemical reactions.
Capital markets align actions of people with future prosperity via markets price transmission: contagion of price changes from capital markets to product, labour, education, dating markets etc. Goal of life is to increase Nasdaq index.
The capital markets optimize the allocation of planetary resources to maximize return on investments which means maximize capitalization. It shapes the incentives, goals, values, and culture of billions of people to maximize capitalization (future profits) of the economy. The capital markets is a leapfrog in social evolution that resulted in a 50x boost of economic growth since the late 1800th from historical 0.06% to 3.5% pa. It is comparable to the emergence of a neural system communicating with cells via electric signals instead of slow chains of chemical reactions.
The modern global machine is mainly built on protected property rights and free markets, enforced by political machines based on competition between politicians and media to get the majority vote. These mean market economy where incentives are delivered
through interrelated markets. Price contagion or price transmission from capital markets across assets into product, labor, education and even dating markets optimize incentives for billions of people to feel and do something useful for capitalization.
Venture Capital and startups are the spearhead of the capital markets and mankind evolution. Fantastic ideas from books and movies once read in childhood are built into products and new life for people here.
Both prosperity and recession have roots n the capital markets (except covid perhaps). Errors of traders destroy billions and institutions built for centuries.
Yes, you are getting it right: capital markets jobs are about exceptional accuracy, performance, creativity and discipline.
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