Originally Posted by diredesire
Sure, the market is largely arbitrary, but historical returns are ~8% over time following only index funds. I'm only saying that it is going to give you bigger returns in the long run as compared to a traditional savings/money market account. I acknowledged it's higher risk (due to above). "It is what it is," and there's nothing you or I can do about it. Doesn't mean you shouldn't invest. If you're risk adverse there's still better options than holding money (strictly) liquid or put it in a bank. With current interest rates, you're losing (real) money on an YOY basis. IMHO it'd actually be pretty unwise to toss the money into a savings account and call it good.
yes indeed, it is what it is. But I seriously wonder if we are not nearing the time when people do realize what the stock market is and just stop buying - which will be just the end of stock investing as we know it. It already appears that there's fewer new investors coming (just like in ponzi schema when you run out of new gullible folks).
In fact when you see index return from like 1999 till now (~13 years) you will see that there's virtually no return over this 13 year period whatsoever. Not 8% yearly, not 5% yearly , nothing. (i mean assuming you invested in Jul 1999 and just hold till now).
When you say "there's still better options than holding money" - what are those? I'm seriously asking since I do agree that putting it in the bank is indeed a losing proposition due to inflation.