3 ms·
That "normalizes" the risk, but the real world risk is not gaussian. A .com bubble, 9/11, housing crisis, type of event will wipe you out... Seems like every de
by maxdemarzi 10y ago
That "normalizes" the risk, but the real world risk is not gaussian. A .com bubble, 9/11, housing crisis, type of event will wipe you out... Seems like every decade we get a one in a million type of event...
- 11thEarlOfMar 10y agoA housing crisis type of event would increase the default rate substantially, but not to 100%. I'd expect that rather than a +10% return, I might see -10% to -20% return during the event. Many stocks dropped 40% - 60% during the crisis, so for my money, stocks are far riskier.