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by allendoerfer
2028 days ago
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If I am investing and seeking returns I will tolerate a certain level of risk and volatility, if they are justified by the returns I am getting. If I want to store value, what I am looking to avoid at all costs is volatility and risk. That's why instituations are even accepting to lose a little bit of value in return for security by buying bonds from Northern European countries. It's kind of in the definition of the word "storing": If you want to store water you won't put your bucket of water on to a race car, even though it might drive through a heavy rain. |
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