Part 2/11:
The primary cornerstone of these influencer-led discussions is the concept of compounding interest, often simplified into neat graphs showing consistent upward trajectories. While understanding the mechanics of compounding is essential, most videos fail to portray the nuanced reality of investment returns. In many instances, they present historical averages (like 7% to 10% returns) as guaranteed outcomes, glossing over the inherent volatility and risks associated with stock market investments.