QUOTE(bursalchemy @ Nov 25 2014, 06:43 PM)
If your assertion for stock market investment is gambling. Then FD also a form of gambling, there are still probability that bank will default on the interest payment, like what happened in Greeks "haircut"
Even holding cash is also a form of gambling, we will not know what happen tomorrow to our economy. Our currency may devalue against other currency and reduce our purchasing power. Nothing is certain in every form of assets right?
Decades ago, the market treats gold as a safe assets and only will go up. But this is proven as wrong assumption as gold has dropped in value in recent years.
However, market still assume MGS is risk free assets. As government can print money when it want to bail the country's economy out.
None of any assets is certain right?
Life is also a gamble, for example when you decide to cross a road.. Even holding cash is also a form of gambling, we will not know what happen tomorrow to our economy. Our currency may devalue against other currency and reduce our purchasing power. Nothing is certain in every form of assets right?
Decades ago, the market treats gold as a safe assets and only will go up. But this is proven as wrong assumption as gold has dropped in value in recent years.
However, market still assume MGS is risk free assets. As government can print money when it want to bail the country's economy out.
None of any assets is certain right?
But then again, you can reduce the risk significantly, but not write it off completely, when you look left and right before crossing.
Same with any other investment..
This post has been edited by gark: Nov 25 2014, 06:58 PM
Nov 25 2014, 06:55 PM

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