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As a rational actor, all returns are the same when adjusted for risk, so you continue to stick your emergency savings in the bank, and diversify your less immed
by Traster 5y ago
As a rational actor, all returns are the same when adjusted for risk, so you continue to stick your emergency savings in the bank, and diversify your less immediate investments. As a real investor you're probably just going to flee domestic investments in favour of the returns of the S&P500.
- CaptainNegative 5y agoAll returns in the space of rational strategies* are the same when adjusted for risk, which is tightly related to those vehicles subject to classical market forces. A lit oven is not a particularly great place to stash your cash, even on a risk-adjusted basis. I don't know the particulars of the situation in Denmark, but they could be intentionally making savings an irrational decision so that rational money flows elsewhere.