Throwing money at stocks hoping they can beat the inflation rate devaluing cash balances is not investing, but the complete opposite. Malinvestments are capital allocations which wouldn't occur on the free market, which is exactly what many stocks and RE "investments" are.
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Right. Weren’t CDs and such paying very high interest rates? I remember my dad, who was horrible at money so take with a grain of salt, enjoying 12-13% CD returns for years. So not stocks in that environment, but today it seems reasonable. Anything better?
Sure, but you couldn't predict whether a CD would finish ahead or behind the CPI. Usually ahead, but sometimes not. Gold was the best investment of the 1970s.
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Commodities in general did well in the 1970s. (Of course, the very investments that shined in the 1970s were awful in the 1980s and 90s, and vice versa. YMMV).
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Mr. Szabo, What is an asset allocation/portfolio mix that makes sense to you over the long run? What’s your analog for something like Ray Dalio’s all weather portfolio? Would be great to know.
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It varies widely depending on a person's financial situation: what they are saving the money for, risk tolerance, etc.
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Preserved purchasing power is greater than earning interest.
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Right, agree, and I’m talking about the non-bitcoin portion of wealth. 100% bitcoin would be very risky, that should be obvious. For non-bitcoin, “purchasing power” is cash, right? Stocks are closer to cash than say property because I can turn them directly to cash in minutes.
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And obv I wouldn’t hold dollars. If anything I short dollars by keeping unnecessary debts (though not right now).
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