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I don't think most Americans understand stocks. I definitely don't. Even more so for crypto-currency.

• alphabettsy 5y ago
  True, even most people who believe they understand stocks don’t understand the complexities of the market.
• richardw 5y ago
  At least in my country, inflation is higher than what I get in interest. I lose money every month. I prefer to, over the long term, earn more than inflation. The only way to do that it to add risk. Over the long term, the risk reduces and I’m net positive. Index funds reduce the need to know about stocks. I buy the economy, not a stock. (Well mostly. That’s the idea.) There are times I hold more cash but then I feel the drain on my return every month. In any case, $3k cash seems like a small amount for the safety it brings. Emergency funds are crucial.
  • rootusrootus 5y ago
    > Index funds reduce the need to know about stocks. And for that vast majority of people, whether they are expert or not, the index fund will outperform their personal stock picks anyway. 99% of the population only needs to know 'put it all in a vanguard S&P 500 fund' as their long-term investment advice, at least until they're old enough to see retirement on the horizon.