I wrote about the stock market in the article the day before yesterday, which aroused controversy among some readers, and many readers expressed different views on it. My original intention of writing about the stock market is that apart from seeing the comprehensive introduction of various regulatory measures recently, I feel that the country obviously hopes to introduce social funds into the stock market, and there are two real cases that happened around me recently.
Both cases happened to my friend. Both of you had an in-depth chat with me when you bought digital assets in the early years. At that time, I suggested that you should not invest all your funds in digital assets, and you must keep a certain percentage of cash for emergencies.
Both of them started the fixed investment in 2019, and they also continued to buy Bitcoin and Ethereum for 2 years according to the fixed investment price I suggested. In the first half of this round of bull market, although Bitcoin and Ethereum experienced a 519 plunge, they still made a lot of money relative to the price they set to invest, so they made a good profit.
Recently, both of them needed a lot of money because of family affairs, but in the process of cashing out, there was a problem, which caused the card to be blocked.
When cashing out, some uncontrollable factors (such as encountering black money) lead to card closure. This risk has always existed, and it is becoming more and more unfavorable to ordinary investors. Therefore, for ordinary investors, if they want to make achievements in the field of digital assets, in addition to learning and investing in this field, it is also necessary to reserve a certain amount of cash flow. For example, your total investment amount is 1 million, use 200,000 as cash flow, otherwise, once you need funds in an emergency and you have to liquidate your digital assets, you are very likely to encounter major troubles.
Of course, the cash does not have to be deposited in the bank card. You can choose to invest in those investment channels that are easy to cash out, safe, and low-risk.
In our country, the channels that ordinary people can invest in generally include the following: bank fixed deposits, government bonds, corporate bonds, monetary funds, stock funds, stocks, precious metals, and foreign exchange. The so-called formal channels here refer to those who can participate through banks.
Among these products, corporate bonds are often the focus of banks' promotion, but there are too many tricks in it, and there are thunderstorms from time to time, so I'm afraid it may not be suitable for ordinary people. The trading of foreign exchange fluctuates greatly, requires a lot of professional knowledge, and has a limit on the amount, which may not be suitable for ordinary people. Precious metals require the same amount of professional knowledge, and are greatly affected by the international situation, so it is not easy for ordinary people to master. Some banks also provide leverage for buying and selling precious metals, and once ordinary people get hooked on leverage, they turn investing into gambling.
Therefore, the only ones that are suitable for ordinary people to invest are: bank fixed deposits, government bonds, monetary funds, stock funds and stocks.
Among them, investing in individual stocks requires a lot of time to study, and there is a certain amount of capital required, there will be a considerable threshold, and the risk is extremely high. Whether this is suitable for personal investment is a matter of opinion. I have never bought A-share stocks myself.
So in more detail, only bank fixed deposits, government bonds, currency funds, and stock funds have low thresholds, and ordinary people can easily intervene with limited time, energy, and funds.
The interest rate of bank fixed deposits is about 2%. Some small local banks will offer higher interest rates for large fixed deposits in order to attract deposits, but the highest is about 4%, which is very rare.
The interest rate of treasury bonds is generally higher than that of fixed deposits, and the risk is low, so they are very popular among ordinary people, and they are often sold out within an hour of going online. Therefore, it is often necessary to work fast to buy treasury bonds.
Monetary funds have low risk and flexible deposit and withdrawal, but the yield is low, which is similar to or slightly higher than the fixed deposit interest rate.
Stock funds (including index funds) have the highest risk, but also the highest return, and they are flexible in deposit and withdrawal.
Looking at the above investment channels, under the circumstances of controllable risks, limited funds, and limited energy, almost only stock funds are the investment channels that want to catch up with or even exceed inflation. Among stock funds, I choose index funds with the least risk and the best control.
