Why comfort is a deterrent to growing wealth
Markets also tend to reward those who do not seek refuge in their comfort zone
In investing, what is comfortable is rarely profitable. Yet, most investors tend to invest in what is easy and comfortable to buy. Insurance policies are a case in point as they seem to guarantee returns and are deemed safe. Investors have also been very comfortable buying trending investments like cryptocurrencies because everybody was making quick returns there. None of these comfortable investments, however, generate consistent inflation- beating returns in the long term. Markets also tend to reward those who do not seek refuge in their comfort zone. Be it the 2008 market crash or the 2020 descent, those who continue to remain invested gained in the long term.