I have heard seasoned investment advisors claim "If the markets fail, it doesn't matter where your money is because the world as we know it is over." Unfortunately, I am not knowledgeable enough to determine if this is simply a ploy to get more investment assets under management, or if there is actual truth behind it.
It seems to imply that dollars held in banks (or buried in back yards and under mattresses for that matter) are in reality no safer outside the broad capital markets, as the difference is merely a matter of volatility. But if it were to come to true failure, as in the whole stock market and/or bond market failed, it wouldn't matter because that means society's function has actually broken down.
If this is true, what are the fundamental elements that hold true for both? I figure one must be "the social contract" we all operate within to form the economy in the first place. What else factors into this principle claim?
I would appreciate any thoughts that can elaborate and solidify this concept, or debunk it if necessary.
Thanks for reading.
Submitted August 09, 2017 at 07:57PM by jammerdude