#11
|
|||
|
|||
Re: Why Sklansky\'s idea should not work
[ QUOTE ]
Since the market is not static and in fact has shown a propensity to rise 10% a year on average... [/ QUOTE ] I've heard this stat many times but whenever I do a bit of research, I arrive at a number much lower. In the year 1900 the Dow was ~60; in 2000, ~10,000. I think 100 years would qualify as "long term." According to my compounding calculator the interest rate on 60 over 100 years that would amount to 10,000 is 5.25. I also did the calculation for the last 10 years in which the market went from 8000 to 13,000. It comes out to ~5%. The morale is that buying an index fund gets you about the same as a CD, but puts your principle at risk. Dow Price History |
|
|