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but there's no compounding interest. no dividend based on future cashflows. holding stocks of a diverse index seems better on the long run, no?

by pas 10mo ago

cherryteastain 10mo ago
Check out how $100 put in bank deposits or S&P500 have done versus gold over the last 50 years. You will find that these do not generate real returns when measured against sound currency either.
- atwrk 10mo ago
  $100 put into S&P 500 in 1975 would be about $7500 today, or about $1250 in 1975 dollars. $100 put into gold in 1975 would be about $2600 today, or about $440 in 1975 dollars. S&P 500 would have had 3x the returns of gold.
  - paddleon 10mo ago
    check your numbers with a purchase date of 1971.
- jbstack 10mo ago
  I'm not sure how you reached this conclusion. I did as you suggested. $100 invested 50 years ago into gold would be worth $3000 today. $100 invested into the S&P500 50 years ago would be worth $6870. https://www.macrotrends.net/2324/sp-500-historical-chart-data https://www.macrotrends.net/2324/sp-500-historical-chart-dat... https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-...
FabHK 10mo ago
Indeed. The crypto crowd seems to assume that the options for your savings are cash or bank deposits, or crypto. That's nonsense. A balanced portfolio of stocks (with some bonds maybe to reduce vol and improve your Sharpe Ratio) handily beats inflation. Heck, even bonds alone have mostly had positive real yields. This also supports and funds the productive economy, unlike crypto.
- ttoinou 10mo ago
  Not using your cash also helps the economy. More exchange of money means more velocity means decrease of value of the money. By not using your cash (by for example holding crypto) you’re making the money that circulates higher value
- dmantis 10mo ago
  Until you hold a passport of one of the US enemy states, which are plenty of and have permanent risk of getting your account frozen and money stolen. Crypto doesn't have this issue.
bloppe 10mo ago
Usually, yes. But the government can still tank the economy in all sorts of ways. It happens more frequently in some countries than others, but it can happen anywhere.

but there's no compounding interest. no dividend based on future cashflows. holding stocks of a diverse index seems better on the long run, no?

by pas 10mo ago

but there's no compounding interest. no dividend based on future cashflows. holding stocks of a diverse index seems better on the long run, no?

cherryteastain 10mo ago

Check out how $100 put in bank deposits or S&P500 have done versus gold over the last 50 years. You will find that these do not generate real returns when measured against sound currency either.

atwrk 10mo ago
$100 put into S&P 500 in 1975 would be about $7500 today, or about $1250 in 1975 dollars. $100 put into gold in 1975 would be about $2600 today, or about $440 in 1975 dollars. S&P 500 would have had 3x the returns of gold.
- paddleon 10mo ago
  check your numbers with a purchase date of 1971.
jbstack 10mo ago
I'm not sure how you reached this conclusion. I did as you suggested. $100 invested 50 years ago into gold would be worth $3000 today. $100 invested into the S&P500 50 years ago would be worth $6870. https://www.macrotrends.net/2324/sp-500-historical-chart-data https://www.macrotrends.net/2324/sp-500-historical-chart-dat... https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-...

FabHK 10mo ago

Indeed. The crypto crowd seems to assume that the options for your savings are cash or bank deposits, or crypto. That's nonsense. A balanced portfolio of stocks (with some bonds maybe to reduce vol and improve your Sharpe Ratio) handily beats inflation. Heck, even bonds alone have mostly had positive real yields. This also supports and funds the productive economy, unlike crypto.

ttoinou 10mo ago
Not using your cash also helps the economy. More exchange of money means more velocity means decrease of value of the money. By not using your cash (by for example holding crypto) you’re making the money that circulates higher value
dmantis 10mo ago
Until you hold a passport of one of the US enemy states, which are plenty of and have permanent risk of getting your account frozen and money stolen. Crypto doesn't have this issue.

bloppe 10mo ago

Usually, yes. But the government can still tank the economy in all sorts of ways. It happens more frequently in some countries than others, but it can happen anywhere.