Quote:
Originally Posted by donsutherland1  Not many investments yield such a return over the long-run. The overall stock market has done so in nominal terms, but the past decade has not been good for stocks. Taking the S&P 500, on July 16, 1998, the S&P 500 closed at 1,183.99. Today, ten years later, it closed at 1,245.36. That's just 5.2% higher. In nominal terms, that would translate into an annual return of +0.5%. Once one factors in inflation, the real return is decidely negative. The 10-year return amounts to -21.8%. That comes to a return of -2.4% per year in real terms. That is solely the price appreciation. One must include dividends. If one considers the average annual dividend of 1.4% paid during that timeframe, then the S&P 500's total annual return comes to 1.8% and its annual real return remains negative at -1.1% per year. |
I am sure you realize there are more instruments to invest in than just stocks
that is also why i am against Mutual funds except as an introduction to the market
triple exempt muni bonds
last i checked US savings bonds still double after 10 years
commodities have done rather well of late
shorting or buying puts would have done well every down year of the market
and on and on and on
its hard to get good investment advice with a few hundred bucks
but its pretty easy when you go a few $100,000