Click Baity – I know but it is an excellent way to explain the relationship between risk and returns
Before we go on with our rants about investing, let’s take a breather and talk about Squid Game, the Netflix series that shook the world. Anyone who has watched this series understands immediately that risk and returns are highly correlated whether it is in life or simply in a “game” like this one. Basically, for you to win the final prize, you will have to survive every game designed specifically to eliminate players like you. In short, the game is only highly rewarding because many people lost their share of the prize (because they died).
Drawing a relationship with the squid game I think we can all agree that investing is also similar because the amount gained by “winners” is determined by the amount lost by others. Many people know the phrase “high-risk...