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I'm a big fan of MMM however a better analogy would be a disease comes through that makes all the eggs 50% smaller, or leads to 50% infertility. MMMs analogies
by bfieidhbrjr 7y ago
I'm a big fan of MMM however a better analogy would be a disease comes through that makes all the eggs 50% smaller, or leads to 50% infertility.
MMMs analogies tend to assume you're independently financially secure, which is his whole schtick. I love it. But there are people who'll lose their jobs and house in a recession and need to draw down their stock at the worst possible time, not leave it sitting there as the analogy implies.
- jotto 7y agoSuch a politely written counterargument.
- deleted 7y ago[deleted]
- chii 7y ago> need to draw down their stock at the worst possible time then they're over invested! If they don't have spare money to invest, they shouldn't be. If you lose your job and have to sell stocks to pay rent, then that money shouldn't have been in stocks in the first place. The stock market isn't a place to park emergency money. It's a place you put money _after_ you've paid for necessities and topped up emergency reserves, in the hopes of getting a greater return.
- _bxg1 7y agoI do think there's still something to be said against the "there's nothing to worry about", which is that people do lose jobs and experience other repercussions during a recession. It's only in the case of investing - and prudent investing, at that - where there's nothing to worry about.