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It's unlikely to invest in a index that gives you a 10x return. Average return from S&P500 from 1928-2015 is 11.41% [ source : http://pages.stern.nyu.edu/~ada
by tosseraccount 10y ago
It's unlikely to invest in a index that gives you a 10x return.
Average return from S&P500 from 1928-2015 is 11.41%
[ source :
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/... ]
Note that this is not inflation adjusted; inflation is about 3.4% historically.
It'd take a little over 21 years to get a nominal 10x return at 11.4% average return.
- ultramancool 10y agoYeah, this is basically why passive is great. People say hedge funds are good in a downturn, but the odds of a downturn in any given year are not actually that high.
- tosseraccount 10y agoFrom the Professor Damodaran's historical returns link: From 1928-2015, of the 88 years, 24 were down years. Probability of a down year is 27%