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@partial_accumen@lemmy.world

2026-05-07 05:38 UTC

The biggest driver of the stock market right now is (relative to this problem) lower interest rates and high inflation. If you have money, parking it in a savings account earning 3% at best is *losing money*. Inflation is devaluing that money in the account with the inflation rate currently at 3.26%. Low short term interest rates on US Treasuries mean the 3.77% yield is just barely outpacing inflation. So where do you go for a better return? The US stock market. trump is destroying our nation, but even the boring S&P500 index funds are, as of today's market closing, returning 7.59% YTD (since Jan 1 2026)! If you had put $1000 in a boring S&P500 index fund on Jan 1 of this year, it would now be worth $1075.90. Compare that to something silly like crypto. Lets take Bitcoin for example: If you had put $1000 in Bitcoin on Jan 1 of this year, it would now be worth $928 as Bitcon is down 7.2% YTD (since Jan 1 2026). Even physical gold which has performed very well recently is only up 8.66% YTD, which is good, but gold is a hedge, not a great investment. Where else beside the US stock market are you getting even close to these returns with this level (or lower) of risk?

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