There are strategies that seem to work but are burdened by a fundamental problem -- they just shift the risk. They bring steady results until an event happens t

There are strategies that seem to work but are burdened by a fundamental problem -- they just shift the risk. They bring steady results until an event happens that causes huge amount of loss. As a risk guy I can tell you basic thing about risk: risk is cost. One way to make people miss an obvious large cost is if there is low risk of something happening but very large loss associated with it. Ideally, you want to invest in things that have relatively known and quantifiable risks. Because that's pretty much a prerequisite to making an actual, informed decision. If there are large, unquantifiable risks then you are simply gambling. As an obvious example of illusory returns, if you talk to your friend who has "invested" in a pyramid scheme they will tell you how fantastic and steady returns they are getting. You might decide to invest yourself and you will also probably see steady returns. Until the whole thing crashes down and, on average, everybody will lose.