Ancestors

Written by Zach Weinersmith on 2024-11-18 at 15:43

Assuming you're planning for the long-term, why do people recommend gold or real estate against inflation and not just index funds, which should incorporate changes in the value of currency naturally?

Like, aren't commodities and real estate more prone to random shit happening?

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Toot

Written by 𝚝𝚓𝚠 on 2024-11-18 at 16:02

@ZachWeinersmith gold's value increases when the economy is doing poorly whereas an index fund wouldn't. So it's more something that would make sense to do if you're confident a crash is coming (you could also short stocks in that case). Someone who knows what they're doing might have gold as a small part of their portfolio so they don't lose everything if the economy goes to shit. But only someone who thinks tacticool gear is disaster preparedness thinks of gold as a retirement plan.

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Descendants

Written by 𝚝𝚓𝚠 on 2024-11-18 at 16:05

@ZachWeinersmith like, most of the time, if you bet against the economy growing you will lose that bet. It's not enough to correctly guess that it will eventually crash. Because unless it's sometime soonish, you probably could have been in a way better place by the time a crash happens by investing in an index fund.

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