Quote:
Originally Posted by Ronald Pagan
To what extent is this situation an inherent risk of holding shares in a market? It is terrible for the holders but funds in the stock market are not insured making it riskier by nature than putting it in a bank account. Unexpected, exogenous events (like a propane explosion or in this case an accidental rumour) happen and people have to bare the risk.
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I would argue that putting your money into an index fund if safer than putting it in the bank over the long-term....sure it will go down at times, but it has always come back up and made money. Most bank accounts dont even keep up with inflation so you lose money over the long-term. And if the market just tanks overall where you lose all your money....well, then you probably have other things to worry about (ie, aliens attacking, world exploding).