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Investing is not saving. If tomorrow a distant relative handed you $70k they’d stuck in a mattress in 1986, you wouldn’t think about inflation or its lack of w
by brudgers 4y ago
Investing is not saving.
If tomorrow a distant relative handed you $70k they’d stuck in a mattress in 1986, you wouldn’t think about inflation or its lack of work over the years.
Saving is being your own distant relative.
Investing is a bet on being smarter than people with enough money to move markets.
It is a bet on beating people whose full time job considers making your $70k theirs a legitimate business practice.
Anyone who has never been skunked by the economy has either been lucky or hasn’t been in very long.
Or to put it another way, looking at returns on each “safe strategy” you list during the Great Recession might be a useful research exercise.
- creatornator 4y agoNo, it's day trading and picking stocks which is betting against wall street firms, obviously that's not the way to go. But that's not all of investing. If you are diversified and tune a portfolio for risk, it's more like a bet that the long term trend will be for the global economy to become more productive as time goes on. And this is usually true, besides the transitory periods of recession.
- brudgers 4y agobesides the transitory periods of recession https://en.m.wikipedia.org/wiki/Spherical_cow https://en.m.wikipedia.org/wiki/Spherical_cow