Finance Library
InvestingIntermediate 4 min read
Risk vs Return
Higher potential return comes with higher potential pain.
The trade-off
Investments that have historically returned more — like stocks — also bounce around more. Safer assets like cash or short-term bonds barely move, but barely grow either.
Risk isn't just volatility
Real risk also includes the chance of permanent loss, inflation eroding cash, or being forced to sell at the wrong time. Cash feels safe but quietly loses purchasing power.
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