But the question is why... 1) The monetary expansion rate of the US is between 7-9% per year. Historically production has been increasing faster than that, sto

But the question is why... 1) The monetary expansion rate of the US is between 7-9% per year. Historically production has been increasing faster than that, stocks aren't included in the index, and so measured inflation is lower. 1a) Because the money supply is continuously expanding, rents are also continuously increasing, and so over time owning a house is indeed an investment, and one that saves you substantial amounts of money. Calculations that its better to put that money into stocks or similar, typically ignore what happens to rent. 2..3) The US stock indexes have done that, if you measure from low to high. However, companies that fail are removed from the indexes, so this statistic is survivor biased. 4) stock picking is a winning game if you understand finance, and have the time and inclination to read company annual reports until your eyes bleed. And yes stock indexes are the best bet for share investing, but putting everything into them is ill advised. Bear in mind that the time you are most likely to need that money, is just after one of the periodic great crashes of the stock market has thrown the economy into complete disequilibrium. Which is when it won't be there for you.