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Cake day: June 16th, 2023

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  • That’s why the stocks aren’t picked individually at all. They are picked in the opposite way to ensure that no single stock, industry, country can cause a total loss. By this diversification investing into stocks is for example safer than keeping the money in the local economy, as it introduces some decoupling from the economy of the country of the fund and the funds value. Meaning it can still pay out money (introduce value) even if there’s a local collapse, as such it’s a stabilizing force for the economy.

    Regarding a total collapse, you’d need to specify what you mean exactly. The term is just to wide to discuss and address concerns.