4 ms·
Well, you don't buy individual stocks; you buy slices of slices of everything to dissipate your risk towards variance. And you definitely don't hold cash. Holdi
by kache_ 4y ago
Well, you don't buy individual stocks; you buy slices of slices of everything to dissipate your risk towards variance. And you definitely don't hold cash. Holding cash has a lot of risk as well
- kbenson 4y agoAh, like slices of slices of mortgages. :/
- kache_ 4y agoThere are degrees to it. Slices of all mortgages are less risky than a single mortgage. Slices of all tech stocks are less risky than individual tech stocks. Slices of all American stocks is less risky than slices of one industry in America. And slices of all equities trades across the world is less risky than slices of America Bet on humanity :)
- logifail 4y ago> Slices of all mortgages are less risky than a single mortgage If you've not watched The Big Short (2015)[0], it's a really excellent film. [0] https://www.imdb.com/title/tt1596363/ https://www.imdb.com/title/tt1596363/
- logifail 4y ago> And you definitely don't hold cash. Holding cash has a lot of risk as well (Sorry, genuine questions) risk of what and compared to what?
- epgui 4y agoRisk of loss, theft or physical degradation. Then there’s the costs of holding cash, which are known to give you a negative yield due to inflation (nevermind bank fees or insurance costs, etc)
- ghaff 4y agoI assume cash was being used in the normal financial accounting sense of the word as opposed to dollar bills in the mattress. Yes, there's inflation negative yield. But especially in the low interest and inflation rate environment that has been the case until possibly recently, the difference between "cash" (i.e. default investment at a brokerage) and other very low-risk investments (e.g. high quality corporate bonds) has been pretty minimal.
- tmn 4y agoYou hold cash for short or mid term optionality. If you want long term stable store of value buy gold or treasury bills
- ClumsyPilot 4y agoMost people who want to secure family wealth and have the option of trickle incompe buy real estate
- wildrhythms 4y ago2008 is calling and wants to talk to you.
- ClumsyPilot 4y agoI agree, we as a society have learnt nothing
- nly 4y ago2008 property crash was mostly a US phenomenon
- razius 4y ago
- davchana 4y agoOne of the many, we indians experienced few years ago, where the prime minister simply announced on national tv that from tonight 8pm onwards two denominations (the highest ones at the time) are not valid anymore. I think he gave few/20 weeks to deposit old notes to banks. One of many, the housewives who saved money from day to day house expenses, had to come out clean to family that they are holding 1000s of currency in old now defunct notes.
- samarthr1 4y agoAnd so did a bunch of folks who held black money no?
- davchana 4y agoI think the official figure is, more that 99% of old money was presented to banks for conversion; but this might spill into a political or controversial conversation, I will not be pursuing it because of lack of energy.