Quote:
Originally Posted by n0nsensical
It is really hard for normal people to make money on the stock market. There is an entire industry of people who make careers out of taking your money.
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You see, this is the thing. "Making money on the stock market." When people think of being investors, it's a mistake to think, "Oh, right. Stocks and bonds," and that's it.
People like the idea of making money in stocks, and perhaps they'll look at bonds as the "safe and wise" thing to do...you know, to "diversify." It's only when you get yourself a proper financial advisor (not just a broker) who will also let you know about the function of holding cash (T-bills), real estate, and other vehicles that can be unaffected by conditions that wipe out stock values. Modern portfolio theory has been around for how long now? Haven't enough people learned their lesson? Maybe it's just greed, because with the information and products out there, it really is as easy as picking what level of risk you're comfortable with. I guess some people are merely concerned with making as much money as possible. But it's funny—you can't escape taking on as much risk as necessary.