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February 2012
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Has it become fundamentally wrong to invest in the stock market?

(Over a decade of negative growth with the most accurate forecasters claiming there is no light ahead. Have stocks proven to be an inherent bad financial investment? Do experts agree that this type of investment doesn’t have a long term positive expected value?
Noe that I’m talking in aggregation, not about individual stocks.)

Answer:

You are apparently reading the wrong newspaper, website or book, listening to the wrong radio station, or watching the wrong talking head…experts cannot help but agree (since the data are so plain) that over any two-decade period (including during the “Great Depression”), the broader stock market has ALWAYS outperformed every other investment vehicle…as it has for almost 300 years, and will continue to until humans stop having good ideas and stop being greedy!

You should do the math yourself instead of listening to whoever you are listening to!

If you had invested $10,000 split equally among the Dow components on this date twenty years ago and held it through today, you’d be up 258.77% (an average annual return of 12.9%) PLUS you would have earned close to an additional $10,000 over that time in dividends.

NO other investment will ever do that sustainably!

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