4 ms·

> the economics of the world has kind of forced me to embrace gambling How so?

• tombert 3y ago
  I'm being a bit hyperbolic, but what I was trying to say is that the way that you're expected to preserve wealth in the US is to put your savings into the market somehow. Markets are sort of inherently unstable, or at least unpredictable, meaning that there's sort of an inherent risk to that, and as such you're "gambling", at least a little. If you compare this to an FDIC-insured bank account, or a treasury note, there's effectively zero risk, so I would say it's decidedly not gambling, but the problem is that generally speaking zero-risk things don't pay enough interest to beat inflation, meaning that your money is degrading a bit. Obviously there's a difference between YOLOing everything in GME vs putting a bit of money every month into VOO, but the latter still does carry some risk, particularly in the short-term.
  • WalterBright 3y ago
    The golden rule is the higher the risk, the higher the rate of return.