Alcohol - Stimulant or Depressant?
If you visit almost any bar and grill on a Friday night after work, you'd swear that alcohol was a stimulant. The noise and laughter are strong evidence of alcohol's stimulating effects.
Yet at 4:00 in the morning, when you see a few happy-hour customers sleeping it off in the streets, you'd swear that alcohol is a depressant.
Chemically, alcohol is a strong depressant. But in the short term, by depressing a person's inhibitions, alcohol acts like a stimulant.
Likewise, Fixed Deposits too appear like a stimulant in the short term because they seem sensible, logical, safe and sober.
However, like 'alcohol' which gradually turned into a depressant, Fixed Deposits too turns into a depressant over the long term when you realise that the money is just not enough to make ends meet during the retirement phase of life.
Therefore equity investing becomes crucial for long term goals and a comfortable retirement.
However, due to its volatile nature, equity investing may cause initial jitters making us feel weak in the knees but over the long term equity investing builds our stamina to help us run our life's marathon.
Needless to say equity investing provides a cushioned retirement.