compounding gains has also become the only strategy to stay afloat.
Look at the performance of broad index funds since 2008. You either dumped everything you had in the market over the last 15 years or literally lost out on 4Xing your money.
That kind of dynamic is pretty shitty for risk, why would I sink my money into any kind of risky venture when the market keeps spitting out 15% a year returns on safe investments.
All expenditures also get warped by this, move across the country? Buy a new car/house? Better to play it safe and keep the wheels spinning and watch the numbers go up and to the right.
Look at the performance of broad index funds since 2008. You either dumped everything you had in the market over the last 15 years or literally lost out on 4Xing your money.
That kind of dynamic is pretty shitty for risk, why would I sink my money into any kind of risky venture when the market keeps spitting out 15% a year returns on safe investments.
All expenditures also get warped by this, move across the country? Buy a new car/house? Better to play it safe and keep the wheels spinning and watch the numbers go up and to the right.