1) Stocks: people buy stocks when they see a lot of profit is made (high)
And sell when they fear they will sink lower (low)
2) Savings accounts have low yields
3) Funds: there are very few good ones.
4) Bonds: when interests rise, bond prices drop
5) Real estate: not liquid, temptation to use too much leverage. Price?
6) It's subjective to determine the intrinsic value of a company
7) A lot of costs in internal bank funds (commissions, management fee, performance fee, subscription fees)
8) A lot of people are not interested in investments, don't put a lot of time and thought in them and think they are hard
9) There are a lot of greedy people in the investment industry. A salesman rarely holds your best interest
10) Alternatives are hard to find and to evaluate. (good performing funds, good advisors)
Next post: Solutions
