EFT - Investing In Stocks Bonds Funds: What Are We 'Betting' On?
- Even though Stock and Bond markets aren't the "casinos" investors thought they were 100 years ago in the "Roaring '20s," investors are still always "betting" on some scenario.
- We may be betting on a company excelling and growing; or on its merely continuing to perform at its current level.
- Or we may be betting on its merely surviving: staying alive and paying its debts.
- In many cases, we are betting on more than one scenario, although investors don't always realize that.
- We need to understand which scenario(s) we are betting on and what the risks are, so we can be sure we're getting adequately paid for taking all of them.
For further details see:
Investing In Stocks, Bonds, Funds: What Are We 'Betting' On?