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RE: risk reward in real life

in #freedom7 years ago

Interesting view. What I've learned is that risk is subjective when it comes to investing. Banks say risk is what you get with a potential to earn. The safest investments according to banks are those that make you no money. They are actively organized so that no money is lost, no money is gained. Whereas, the low risk investments like index funds, which guarantee you an ever growing wealth are high risk according to banks, because they go up and down. Cryptocurrencies, well, personally I don't know what to make of investing in them. They seem like a high risk investment, but then again they work. The biggest problem I see is that people have absolutely no clue as to what is a valuable cryptocurrency. The oldest and the newest cryptocurrencies dominate the top 10. The cryptocurrencies which have the best proven track record of changing with the times don't do that well, but they live on. Maybe 2018 is finally their year?

Also finally, I'd like to share my own interpretation of your slave, outsider, rich division. I myself tend to think with poor, average (these two are slaves), financially smart, wealthy (These two are maybe close to your outsider), and finally rich. Rich people in my view are really rare, they are those who have so much money that they don't need to be financially smart, they can use money as they wish. They are those true outliers we rarely see.

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