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by JoshTriplett
1688 days ago
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Over a sufficiently long term timeline for certain types of investments, the latter often turns into the former. Total-market stock funds on a 30-year timeline are volatile, but are unlikely to lose your money in any scenario in which money continues to have value. Total-market stock funds on a 5-year timeline have a substantial risk of getting out less than you put in, just from an ordinary downturn, let alone a major crash. (I agree that the term "risk" often conflates a variety of things, and in this context should primarily mean "risk of losing your investment" rather than "day-to-day volatility".) |
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