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> Finances are kept in poor places, such as banks and bitcoin, the stock market instead of better investment strategies like Bonds and ETFs. Why do you list st
by AnimalMuppet 2y ago
> Finances are kept in poor places, such as banks and bitcoin, the stock market instead of better investment strategies like Bonds and ETFs.
Why do you list stocks in the "poor" places and bonds in the good ones? Why do you see bonds as a better investment than stocks? (Certainly that has not been true historically...)
- kentm 2y agoStocks here almost certainly means stock-picking, vs investing in broad market-tracking funds (ETFs). Historically, people are terrible at picking good stocks and have much better returns investing in ETFs that track things like the S&P500.
- righthand 2y agoStocks will shift on a whim and rely on hype, same as bitcoin. This can cause a total crash and people losing money. Capital earned on stocks is not cash equivalent therefor if the stock goes down, you lose your initial investment. The risk is insanely high. Compared to Tbills and other cash equivalent bonds, if the yield goes down you still have your money. Take a look at what happened just today when the market opened and China released an LLM model, the AI hype market crashed.
- fragmede 2y agoover a large enough time scale, stocks do just fine. if you need to take the money out right this second, yeah, you've a problem, but the SP500 is going to outperform Tbills over a decade. But really, A proper portfolio is going to have a mix of both, as well as other investments, to protect from crashes in one sector.