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No, investments generate income. Buying a house and renting it out is an investment. The value of the house doesn't fall because it's generating rent. Buying
by hahajk 4y ago
No, investments generate income.
Buying a house and renting it out is an investment. The value of the house doesn't fall because it's generating rent.
Buying a house with the intention of reselling it a year later is speculation.
Buying a car for your taxi service is an investment because the car now generates income for you.
Buying gold, crypto, or money markets is always speculation because these things do not generate income.
- lordnacho 4y agoYou can lend out your crypto for interest. Now it's an investment? Sorry but the distinction between asset values and cash flows is not material. I've worked with derivatives for many years and they're all accounted for together, like the GP says.