For a finance professor to liken equities to gambling borders on irresponsible. I really like professor Bodie, but not everyone is as conservative as he is. I, for one, and wholly willing to risk a 40% paper loss in my portfolio because I am in my 20s and I believe that the history of recoveries following major bear markets is likely to continue into the future.
What professor Bodie does hit on the head is that risk aversion has as much to do with it as age [time horizon].
For a finance professor to liken equities to gambling borders on irresponsible. I really like professor Bodie, but not everyone is as conservative as he is. I, for one, and wholly willing to risk a 40% paper loss in my portfolio because I am in my 20s and I believe that the history of recoveries following major bear markets is likely to continue into the future.
What professor Bodie does hit on the head is that risk aversion has as much to do with it as age [time horizon].
sethhersch 3 months ago