The dirty secret is that stock holding has slowly shifted to be the safer hedge against inflation, which has been creeping upward in the classic tradition of frog boiling.
Government bonds are safer still, but on the right time horizon index funds have had better rates of return.
Point is, you have to park your savings somewhere, because if you leave them in the bank, the paltry returns of a savings account won't maintain purchasing power relatively to inflationary devaluation.
right, I understand that, and I accept that currently cash is trash and bonds are little better. But it is very unsettling to think that there is so little tethering non-dividend paying stocks to any sort of value.
Government bonds are safer still, but on the right time horizon index funds have had better rates of return.
Point is, you have to park your savings somewhere, because if you leave them in the bank, the paltry returns of a savings account won't maintain purchasing power relatively to inflationary devaluation.