4 ms·
IMO this is a sort of gamblers ruin that happens in the markets. If you can wait long enough you usually will see a positive return (across well indexed purchas
by maerF0x0 7y ago
IMO this is a sort of gamblers ruin that happens in the markets. If you can wait long enough you usually will see a positive return (across well indexed purchases) . However, often times you need the money sooner. This could be because that money was actually for a major purchase (like a home) or because a recession means you lose your job and are on the brink of financial disaster (meaning you have to sell out at lower than cost).
- greenshackle2 7y agoBuying a house is not like losing your job, you're not supposed to put all your money in risky investments if you know you're going to need it in less than 5 years (for retirement, to go on extended unpaid leave, to buy a house, etc.). But even for longer time horizons, I think the common wisdom that stocks are low risk over a long planning horizon is overblown: https://web.archive.org/web/20170911171611/http://www.norstad.org:80/finance/risk-and-time.html https://web.archive.org/web/20170911171611/http://www.norsta...