As retail investing surges and trading behaviors become increasingly speculative, Kairong Xiao, Associate Professor of Business at Columbia Business School, offers perspective on the blurred lines between investing and gambling in MarketWatch.
In the article, "Is Investing Becoming More Like Gambling?", Xiao emphasizes that what distinguishes traditional investing from gambling is “a consistent expectation of positive return.” He explains that while many retail investors treat the market as a place to place high-risk bets—particularly through short-term options and speculative stocks—such behavior typically lacks the long-term strategy fundamental to sound investing.
Xiao’s insights help frame the conversation around retail investor behavior, financial literacy, and the increasing gamification of trading platforms.
