It’s time for another thrilling episode of… INVESTING DEATHMATCH! In which we pit two forms of investing against each other and see which one escapes the struggle unscathed.
Today’s fight is an ancient grudge match between two opposing philosophies: extreme caution and risk-taking. In one corner we have investing in the stock market—an inherently risky proposition but one that comes with untold rewards. In the other, we have the option of the risk-averse everywhere: just… not with the stock market, and instead, playing it safe by sticking your money in a savings account.
It occurred to us that we needed to cover this battle to dispel some incorrect assumptions about money management.
After the Great Recession and stock market crash of 2008, a lot of young people coming of age in a new and fragile economy were scared away from the stock market. They saw the grownups around them ruined by plummeting stocks and improperly leveraged debt.
As a result, millennials are statistically less likely to have anything invested in the stock market—whether it be through a retirement fund or a managed portfolio. These younglings are choosing to play it as safe as possible.
But is that truly the way to win this Investing Deathmatch?
Fighters… TAKE YOUR CORNERS!