Okay, let’s be real—gold’s hitting record highs, Bitcoin’s back in the news, and everyone’s suddenly a crypto expert again. But here’s the thing: I’ll take boring old stocks and bonds any day. Why? Because while shiny objects grab headlines, they don’t pay my bills or grow my money reliably. Let me break it down for you.
Look, gold has its moments—like during the 2008 crash when everyone panicked. But long-term? It’s kinda like that fancy watch your uncle bought: looks impressive, but doesn’t actually do much. Adjusted for inflation, gold returns about 1-2% annually. Meanwhile, my grandma’s blue-chip stocks from the 80s? Still paying dividends. That’s the difference.
And then there’s crypto. Man, where do I even start? The swings are insane—up 20% one day, down 40% the next. Remember FTX? Yeah, exactly. Even governments are warning people about the scams. At least with stocks, you own part of a real business. Crypto? It’s like betting on whether people will keep believing in digital tulips.
Let me put it this way: $10,000 in the S&P 50 years ago would be worth over $1.2 million today with dividends reinvested. Same amount in gold? Maybe $50k after inflation. Crypto? Well… if you bought Bitcoin at its peak in 2021, you’re still underwater. Ouch.
Here’s how I think about it: stocks are like a cricket team. Even if your opener gets out cheap (looking at you, tech stocks), your middle order can still score runs. And markets always recover—remember March 2020? Yeah, that rebound was faster than anyone predicted.
This is what gold bugs and crypto bros never get—companies actually pay you to own them. Johnson & Johnson has increased dividends for 60 straight years. Try getting that from a Bitcoin wallet.
Stocks aren’t just ticker symbols—they’re companies making vaccines, building solar farms, yes, even brewing your morning coffee. That’s why they grow over time: they’re creating actual value.
When stocks crash—and they will—bonds usually go up. It’s like having an emergency fund that also earns interest. Old school? Maybe. Smart? Absolutely.
Remember when savings accounts paid 0.1%? Now short-term Treasuries give you 5% with virtually zero risk. That’s free money while you wait for stock bargains.
Everyone declared the traditional portfolio dead in 2022. Then 2023 happened. Moral of the story? What works for decades probably still works.
If checking your portfolio gives you heartburn, maybe don’t put 80% in small-cap tech stocks. Just saying.
Not just different stocks—different everything. Indian IT stocks, US healthcare, European automakers. Spread those eggs.
When one part of your portfolio gets too big—like tech did last year—trim it and buy what’s on sale. Simple, but nobody does it.
Crypto influencers will tell you you’re missing out. Gold commercials will scare you about inflation. Meanwhile, patient investors keep getting richer. Funny how that works.
Gold and crypto make great Twitter drama. But stocks and bonds? They build actual wealth—slowly, boringly, reliably. So next time someone tells you “this time is different,” smile, nod, and go back to your diversified portfolio. Your future self will thank you.
Source: Financial Times – Global Economy
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