Fundamentally, I think there's a high level (and perhaps unsatisfying) answer to this. It's because that's not "banking" as a business, and a bank is established to do banking, not to get into the stock market. In other words, this question strikes me about the same as asking,
why don't ice cream shops stop selling ice cream, and instead get in the ...
Because your "bank" will fail
The related questions assumes a "buy low, sell high", or even better, a "buy low, never sell" scheme of investment.
But your proposed geared fund will not have that. They will have clients. Clients that can withdraw at worst possible moment.
Recessions come hand to hand with markets down run. Long recessions will cause ...
Why doesn't any (serious) bank offer a savings account with a fixed 2%
interest rate for an unlimited amount of time?
I don't want to assume your age but you may not remember that this was actually a completely real situation in the past. When I was a growing up in the 80's I recall my basic savings account had an annual interest rate of somewhere between ...
Why doesn't any (serious) bank offer a savings account with a fixed 2% interest rate for an unlimited amount of time?
If they did that, I would do this:
Divide my money 50-50 between the bank account and stocks
That way I would end up taking money from the bank account whenever stocks are low, and put money there whenever stocks are high. ...