The Risks and Rewards of Investing
Every place that people put their money involves some type of risk — even Valeria’s basic savings account. Although Valeria doesn’t have to worry about her existing savings still being in her bank account tomorrow, she still is risking her future wealth by losing out to inflation.
With stocks, you can lose part or even all of your investment in a short period of time. Yet, over the long term, stocks on average have consistently and substantially outperformed inflation.