Katoslake
Recycles dryer sheets
Need help with my understanding of current environment and relative risk.
Say you have $100k in CD’ s or something similar
Then you have $100k in SP 500 index fund.
Index fund loses 20%. CD’s remain stable.
Which result is better given our inflationary climate?
Is it only when stock values surpass fixed values that it’s a win vs inflation?
Unless an investment is outpacing inflation then you are still losing, it’s only a question of by how much.
Please explain why my thought process is flawed.
Say you have $100k in CD’ s or something similar
Then you have $100k in SP 500 index fund.
Index fund loses 20%. CD’s remain stable.
Which result is better given our inflationary climate?
Is it only when stock values surpass fixed values that it’s a win vs inflation?
Unless an investment is outpacing inflation then you are still losing, it’s only a question of by how much.
Please explain why my thought process is flawed.