The problem with long term investments
“If, in 1970, you invested $100 in a fund tracking the S&P index, then by 2023 the investment would have grown to $22,000, far more than it would have in other assets such as real estate or government and corporate bonds. Case closed, right? Put your money into an index fund and simply leave it there.”
https://blog.datawrapper.de/long-term-investments/
#Data #DataViz #Chart #Graph #Investment #Finance #Business #Economics #Economy @economics
@Silversalty @economics Do you mean it is ‘gamed’?
@Silversalty @bibliolater @economics "Stocks selected for the Index that have stopped improving are replaced with better performing ones."
Yes, because the goal is to always be invested in a broad index of the top 500 companies in the market, not just to have the appearance of growth.
Am I missing something?
@ehmatthes @bibliolater @economics
I'm far from an expert on stocks. Just based on something I read long ago.
But this seems classic Orwell Speak.
@Silversalty @ehmatthes @economics
I respect your humility regarding expertise.
@bibliolater @economics
The Index itself is designed to always appear to be going 'up.' Stocks selected for the Index that have stopped improving are replaced with better performing ones. The rare times the Index drops are usually economic disasters. Slow down turns have less effect.
It's purpose is to get people to 'invest' seeing only the 'winners.'