https://dive2stocks.blogspot. com/2024/11/managing- investment-risk-with-simple. html Managing Investment Risk: With a Simple Analogy Mapping investments to the Mohs scale of hardness is an interesting analogy that can help illustrate the relative resilience and stability of different investment types. Here's how we might conceptualize this: Investment Hardness Scale 1. Cash (Talc): Highly liquid but offers little resistance to inflation. 2. Savings Accounts (Gypsum): Slightly more resistant than cash, with minimal interest. 3. Certificates of Deposit (Calcite): More structured, with penalties for early withdrawal. 4. Government Bonds (Fluorite): Generally stable, but can be affected by interest rate changes. 5. Corporate Bonds (Apatite): Harder than government bonds, with higher yields but more risk. 6. Real Estate (Orthoclase): Tangible asset, resistant to some market fluctuations. 7. Blue Chip Stocks (Quartz): Well-established companies, relatively stable in the long term. 8. Gr...
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