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I wish they'd say what "Stocks" means. Is it the entire market? On which exchanges? This is a relevant read: https://www.investopedia.com/terms/s/survivorshipb
by maerF0x0 7y ago
I wish they'd say what "Stocks" means. Is it the entire market? On which exchanges?
This is a relevant read: https://www.investopedia.com/terms/s/survivorshipbias.asp https://www.investopedia.com/terms/s/survivorshipbias.asp
- pmiller2 7y agoThe very leftmost column of the table has the heading 'S&P 500 (includes dividends)', so I assume that's the meaning of 'stocks' in the other columns. If not, that would be very misleading.
- baot 7y agoI think it's worth noting that S&P 500 index funds didn't exist until the 70s. You'd be spending a lot of time and money to approximate it before that.
- sdinsn 7y agoThe S&P 500 just tracks the largest 500 publicly traded companies. So no, it's not difficult to approximate.
- baot 7y agoYou need to pay commission and spread every time you rebalance your portfolio (daily, if you copy the frequency of modern funds) So at the £5ish/trade of my current broker, that's a cool £912500/year on just commission. For some reason the massively reduced ease of entry to a trading strategy like this is never considered when lauding its historical performance.
- sdinsn 7y ago> daily, if you copy the frequency of modern funds Modern S&P500 funds like SPY or VOO rebalance quarterly FYI
- deleted 7y ago[deleted]
- rb808 7y agoYeah I'd like to see too if you were Russian, Japanese or Argentinian for example what the returns would have been. I doubt the stock market would have been so kind.
- klipt 7y agoNo matter where you live you can usually diversify to global stocks.