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What is the counterintuitive truth about investing in U.S. stocks?
U.S. stocks are not high risk; they are low risk?
The biggest misconception among Chinese investors is that they think U.S. stocks are risky, far away, and hard to understand.
Upon closer thought, you use Apple phones every day, run Microsoft systems every day, search with Google every day, and half of the apps you use are on Amazon's cloud. You understand these companies more than you think.
What is truly high risk? It’s putting your money into places you don’t understand at all, like A-shares stocks whose financial reports you can’t read, private equity products recommended by friends, financial products with annualized x% returns that suddenly blow up, or Crypto Alpha tokens based on insider information.
The S&P 500 index has had positive returns over any rolling 20-year period in the past 100 years. Any one.
Including surviving the Great Depression, World War II, oil crises, the internet bubble, financial crises, and COVID-19. As long as you hold for 20 years, you’ve never lost money.
Tell me, can A-shares say the same?