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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