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At some point the second safest investment in the world will have 2x the return and nobody will be interested in the safest.
by onionisafruit 5y ago
At some point the second safest investment in the world will have 2x the return and nobody will be interested in the safest.
- heavyset_go 5y agoEven in that scenario, it'll still serve as a hedge.
- chii 5y agosome institutions need to hold the safest investment, since they might have sudden need to use it as cash - places like insurance companies, or companies that are holding on to liabilities that have a future date, but need to have assets today on hand (for paying in the future date). You cannot hold equities, or bonds which could lose value for such purposes.