Wednesday, July 13, 2016

Risking Assets Just to Get a Return at All

Once upon a time if you wanted to get a risk free return on your investment, you put cash in a savings account. If you wanted a superior return, you risked at least part of your cash in the stock, bond, and/or commodities market for a shot at superior returns.

Now, in this low to negative interest rate environment, you get almost no risk free return or even have to PAY to keep your savings safe. You need to risk at least part of your cash just for the potential of a return at all.

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