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With what you've said, the only options are you either invest it in something that will appreciate above the inflation rate with manageable risk, or you invest

With what you've said, the only options are you either invest it in something that will appreciate above the inflation rate with manageable risk, or you invest it in a small business with return cash flow. The idea is to diversify in risk managed assets. Bonds are out. Commodities are out. Equity Securities, Index and ETFs are all out. All of these are overpriced, have unmanageable risk, and will lose people money; even the best traders out there will lose money on these. The stock market is not an investment, its a casino where the PFOF house always wins. Price discovery failed when 25% of the exchange transactions started occurring in dark pools; its well over half now. Any investment in the stock market is burning money in effigy. Google Stop loss hunting, market manipulation (FRC/GME), PFOF, synthetic shares via options contracts, etc; to get an idea of how bad of an idea it is to do this. Sectors that serve non-discretionary goods are usually more stable in down economies than other areas.

lurk2 1y ago
> All of these are overpriced, have unmanageable risk, and will lose people money; even the best traders out there will lose money on these. You’re not supposed to trade the index fund, you just buy and hold it confident in the knowledge that if it goes to zero you have a much bigger problem on your hands.
- trod1234 1y ago
  There are many ways to invest, and I'm not a financial advisor so I suggest you read up from people who are, or who are well known in such areas like Benjamin Graham, or David Dodd. The rules I mention are their rules, and this is not financial advice. There are day traders, swing traders, options traders, and institutional traders; when it comes to the stock market. There are other ways as well. > You're not supposed to trade the index fund, you just buy and hold it confident in the knowledge that if it goes to zero you have a much bigger problem on your hands. If you are doing this, you are violating investment rules that date back to the 30s. Rule #1 is don't lose money, Rule #2 is Always Manage your Risk Rule #3 is Always invest with a sufficient margin for safety. Rule #4 is profit in volatility. Today, Rule #1 can't be controlled, Rule #2 can't be managed, and Rule #3 has no margin for safety because of inherent changes to the structure of the exchange, the middlemen, the backstopped by the fed pricing, and the lack of price discovery all contribute to a sieve-like environment for those with more money than others. If sufficient transactions happen in the dark (dark pools), there can be no price discovery, and this creates unmanageable volatility in the normal markets, and gives those people who trade in the dark the ability to manipulate and fix the market price indirectly. Yield farming and stop loss hunting happen all the time. The T2 data subscriptions gives these traders access to know exactly how much they need to short to trigger these stop losses and just steal the difference. That's steal your money. Similar things happen in bonds using a YTM financial reporting loophole so interest rate risk isn't propagated into the market value of an ETF (just the underlying value). The indexes are also required to rebalance and reinvest in companies who get listed, even when they have no intrinsic value. This is where your pensions and retirement are. Most companies on the exchanges don't have intrinsic value because they are required to hold a debt burden greater than their assets to avoid hostile takeovers, which occur because banks print money through debt to fund it so long as the cashflow can meet certain circumstances over a 5 year term period. AT&T and Tesla for example have very high debt to asset ratios, and this is true of most if not all equities. Tesla is a bit more convoluted in how they declare that debt because of EV/carbon credits and other regulatory shenanigans, you have to be able to analyze the securities appropriately.

lurk2 1y ago

> All of these are overpriced, have unmanageable risk, and will lose people money; even the best traders out there will lose money on these. You’re not supposed to trade the index fund, you just buy and hold it confident in the knowledge that if it goes to zero you have a much bigger problem on your hands.

trod1234 1y ago
There are many ways to invest, and I'm not a financial advisor so I suggest you read up from people who are, or who are well known in such areas like Benjamin Graham, or David Dodd. The rules I mention are their rules, and this is not financial advice. There are day traders, swing traders, options traders, and institutional traders; when it comes to the stock market. There are other ways as well. > You're not supposed to trade the index fund, you just buy and hold it confident in the knowledge that if it goes to zero you have a much bigger problem on your hands. If you are doing this, you are violating investment rules that date back to the 30s. Rule #1 is don't lose money, Rule #2 is Always Manage your Risk Rule #3 is Always invest with a sufficient margin for safety. Rule #4 is profit in volatility. Today, Rule #1 can't be controlled, Rule #2 can't be managed, and Rule #3 has no margin for safety because of inherent changes to the structure of the exchange, the middlemen, the backstopped by the fed pricing, and the lack of price discovery all contribute to a sieve-like environment for those with more money than others. If sufficient transactions happen in the dark (dark pools), there can be no price discovery, and this creates unmanageable volatility in the normal markets, and gives those people who trade in the dark the ability to manipulate and fix the market price indirectly. Yield farming and stop loss hunting happen all the time. The T2 data subscriptions gives these traders access to know exactly how much they need to short to trigger these stop losses and just steal the difference. That's steal your money. Similar things happen in bonds using a YTM financial reporting loophole so interest rate risk isn't propagated into the market value of an ETF (just the underlying value). The indexes are also required to rebalance and reinvest in companies who get listed, even when they have no intrinsic value. This is where your pensions and retirement are. Most companies on the exchanges don't have intrinsic value because they are required to hold a debt burden greater than their assets to avoid hostile takeovers, which occur because banks print money through debt to fund it so long as the cashflow can meet certain circumstances over a 5 year term period. AT&T and Tesla for example have very high debt to asset ratios, and this is true of most if not all equities. Tesla is a bit more convoluted in how they declare that debt because of EV/carbon credits and other regulatory shenanigans, you have to be able to analyze the securities appropriately.