Viewing a single comment thread. View all comments

FizzyBeverage t1_jaen6sd wrote

It's a method of investing where your broker hedges an investment by making trades in another. Put another way, it exists to limit risk while maximizing gains. If everything works out in the market, which is a big IF.

1

[deleted] OP t1_jaenszi wrote

[deleted]

1

FizzyBeverage t1_jaenxrb wrote

Investing is a form of gambling with managed risks, to be sure.

The alternative is losing most of your nut to inflation in a static savings or ultra conservative money market account.

2

[deleted] OP t1_jaepjyd wrote

[deleted]

1

FizzyBeverage t1_jaeq1l5 wrote

You can buy SPY and do ok. Or if you want to get fancy, open an account with fidelity. They position you in the stocks/bonds/funds that make sense, and do all the decisions so you don’t end up holding the bag. This has been a ridiculously bad year on the market, but most years are better.

1