_A flowing river always goes though uphill, downhill & flatbeds but eventually makes it way into the sea / ocean_
_A pond stays a pond as it’s surrounded by land on all the sides. It can never flow into a larger water body but only waits for the rains & showers to fill it up. It can never end up in the sea_
*Equities are like a flowing river*. They go uphill, downhill & sometimes run over flatbeds; wherein, it’s difficult to see with our naked eye if the river is actually flowing or not. Many streams keep filling up the river.
And because _equities keep running & never stop moving, they have the best chance of ending their journey into the Sea of Wealth_
A pond on the other side looks full & brimming with all excitement when there are fresh thundershowers.
*But, it can hold only that much amount of water*. When it’s summer time, the pond dries up faster & their is no external source to fill it up. We’ll have to wait till the next thundershowers.
*Equities are the flowing rivers into the Sea of Wealth*
Other Asset Classes are mostly like ponds. They never add wealth like the equities but help in basic survival (fixed income, parts of real estate etc).
*We need both Rivers & Ponds*
*Allocation %s* 🤷🏼♂