Sobering Stat for Stock Shorts: U.S. Stock Market Returns (S&P500) (1926-2006)
raylopez99
1 Year 5 Years 10 Years 20 Years
-----------------------------------------------------
Best 54.2% 28.6% 19.9% 17.8%
-----------------------------------------------------
Worst -43.1 -12.4 -0.8 3.1
-----------------------------------------------------
Average 12.3 10.4 11.1 11.4
-----------------------------------------------------
As you can see, there's an asymetry: what goes up doesn't come down
as much. Short at your peril.
RL
Don S
Is this to say that in 20 years the best you can hope fore is about
17.8%, which is less than 1% per year or is that suppose to be an annual
increase of 17.8% per year for 20 years, which would be one hell of an
increase?
raylopez99
> raylopez99wrote:
> > U.S. Stock Market Returns (S&P500) (1926-2006)
>
> > 1 Year 5 Years 10 Years 20 Years
> > -----------------------------------------------------
>
> > Best 54.2% 28.6% 19.9% 17.8%
> > -----------------------------------------------------
> > Worst -43.1 -12.4 -0.8 3.1
> > -----------------------------------------------------
> > Average 12.3 10.4 11.1 11.4
> > -----------------------------------------------------
>
> > As you can see, there's an asymetry: what goes up doesn't come down
> > as much. Short at your peril.
>
> > RL
>
> Is this to say that in 20 years the best you can hope fore is about
> 17.8%, which is less than 1% per year
Annual increase...
> or is that suppose to be an annual
> increase of 17.8% per year for 20 years, which would be one hell of an
> increase?-
Yes, indeed. Use the "Rule of 70" to see how quickly,at 17.8%/yr,
your money doubles: 70/17.8 = 3.9 yrs = ~4 yrs.
Not bad work if you can find it. Most of us however cash out when our
money doubles, and get stuck with some dog investment for years.
Another reason to just buy the index and hold onto it. And this
average (the 11.4%/yr one) has survived many years (since 1926) of
catastrophes, including two world wars.
RL
Don S
compounded per year for the last 20 years as an average. This takes it
from a $321.83 opening on 10/1/1987 until an opening of $1,473.96 on
9/3/2007 which is 1 month shy of 20 years, which is less than haft of
your stated 17.8%.
raylopez99
>
> Your math is a little off. The S&P 500 has increased a little under 8%
> compounded per year for the last 20 years as an average. This takes it
> from a $321.83 opening on 10/1/1987 until an opening of $1,473.96 on
> 9/3/2007 which is 1 month shy of 20 years, which is less than haft of
> your stated 17.8%.
Thanks for your post, but nobody mentioned the last 20 years--the
chart was for the best 20 years since 1926 to 2006.
RL
com...@webtv.net
ability to form "wolfpacks" and character assasinate almost any stock
they target. with the backing of a few hedge funds, these "wolfpacks" of
short sellers can bankrupt companies that are running a small profit.
the companise get such a negative atmosphere around them, that it esses
up their bonds,stock sales,even loans they were tryng to get, that, if
they ad not been a "target" theywould have successfully completed and
continued on in business.
Bahsar Assad is the Syrian dictator. Assads bithday is "9-11"..That date
was chosen to attack America in order to "honor" Bashar Assad "for all
the work he did in helping us", according to terrorist prisoners at
GITMO.