Due to the No Arbitrage Principle, in theory, there should always be risk when you invest, however investing is seen as smart common sense which every adult needs to do whereas gambling is a poisonous addiction we need to curb, what’s the difference? To me, it seems that only when the market is exploitable and not fair, is there a true difference, apart from the immediacy of the results of many types of gambles vs the drawn out nature of investments
In: Economics
Yes, investing is a bit of a gamble. But remember, not all investing is just buying a single companies stock. There are tons of funds that buy various stocks and bonds. So even if one particular stock in a fund goes down in price, that doesn’t mean they all did.
And things like government bonds always pay their interest. If they don’t, then the government has likely failed, and your money is likely worthless no matter what form it’s in.
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