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The problem is the facts that everyone agrees on rarely give the best results. Best comment from the ft article: > A financial literate person probably would n
by zz865 5y ago
The problem is the facts that everyone agrees on rarely give the best results. Best comment from the ft article:
> A financial literate person probably would not borrow lots of money to buy properties since around 2005 when the market was pretty obviously overvalued. How wrong the person had been.
> A financial literate person probably would not buy the cryptos either, for a long time at least. How wrong the person had been.
> A financial literate probably won't buy the MEME stocks either, for a time at least
> A financial literate person save money in the bank account, only to face real rates of -4%.
> I can't even be sure the money printers that drove asset prices to such valuations are financial literate either
- gruez 5y agoFeels like all the reasons you quoted are strawmans of financial literacy. > A financial literate person probably would not borrow lots of money to buy properties since around 2005 when the market was pretty obviously overvalued. How wrong the person had been. Financial literacy advises against timing the market. > A financial literate person probably would not buy the cryptos either, for a long time at least. How wrong the person had been. > A financial literate probably won't buy the MEME stocks either, for a time at least Do financial literacy advocates claim that you'll get the best outcome every time? Or that you'll capture all the opportunities? It also advocates against you betting all your life savings on black 10 times in a row, even though if you won all 10 times you can turn $1k in savings into a million dollars. > A financial literate person save money in the bank account, only to face real rates of -4%. Financial literacy tells you to adjust your portfolio based on your investment horizon/risk tolerance, not stick it all in a savings account.