Re:Every thought about personal finance I've ever had, as co...
by dragonwriter on Saturday February 27, 2021 @11:28AM
(#26285841)
> That’s the view of people who have grown up during an ever rising market like the last 12 years and think that’s just the way it always is.
No, which number is the right pcomparison to be apples to oranges before considering risk has nothing to do with that.
Interest rate on debt is directly most comparable to nominal return on investment, not real return.
I haven't discussed at all what the correct risk premium to assign to stock market investment based on its historical volatility and what interest rate that would suggest is appropriate to consider equivalent on a risk-adjusted basis, either for some presumed generic investor (which would be meaningless in concrete terms) or in any concrete investment scenarios.
No, which number is the right pcomparison to be apples to oranges before considering risk has nothing to do with that.
Interest rate on debt is directly most comparable to nominal return on investment, not real return.
I haven't discussed at all what the correct risk premium to assign to stock market investment based on its historical volatility and what interest rate that would suggest is appropriate to consider equivalent on a risk-adjusted basis, either for some presumed generic investor (which would be meaningless in concrete terms) or in any concrete investment scenarios.