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With dividends reinvested you get -25.096%, https://dqydj.com/dow-jones-return-calculator/ https://dqydj.com/dow-jones-return-calculator/. S&P 500 is -3.745%.

onlyrealcuzzo 4y ago
So one of the worst long-term periods in history - the S&P was still ~50% better than cash. What else is a passive investor gonna do?
- datavirtue 4y ago
  Grow some balls and start a business?
  - onlyrealcuzzo 4y ago
    What if you already have a business with enormous profits and don't want to spend them all, but invest some?
- fny 4y ago
  Sometimes you can't beat inflation. Wealth equality is inherently inflationary. If people in developing nations start demanding the same standard of living, prices are screwed, costs go up, and certain cost changes cannot be hedged. For example, how exactly would you plan on protecting yourself against wage increases? It's not like there's a futures market for wages.
  - jsmith45 4y ago
    If people could agree on some source of unbiased data about average wages that updates frequently for a job type, then there certainly could be (cash-settlement only) futures based on that value. What seems relatively unlikely is that you will find people willing to offer physical settlement futures! The market would probably also be somewhat shallow, being more speculators than anything else. Basically only groups acting more like insurance companies would be willing to add much to the depth of the market, and obviously they would sell such futures at such a steep premium that is unlikely to be a very useful hedge.
- rufus_foreman 4y ago
  10-year treasuries, coupon payments reinvested, would have returned 18.156% adjusted for inflation over the same period, https://dqydj.com/treasury-return-calculator/ https://dqydj.com/treasury-return-calculator/. They returned over 36% in 1982 alone!
  - bequanna 4y ago
    I’m not sure it is a good idea to buy longer dated govt bonds when we’re in the middle of the most aggressive rate tightening period in a generation.

onlyrealcuzzo 4y ago

So one of the worst long-term periods in history - the S&P was still ~50% better than cash. What else is a passive investor gonna do?

datavirtue 4y ago
Grow some balls and start a business?
- onlyrealcuzzo 4y ago
  What if you already have a business with enormous profits and don't want to spend them all, but invest some?
fny 4y ago
Sometimes you can't beat inflation. Wealth equality is inherently inflationary. If people in developing nations start demanding the same standard of living, prices are screwed, costs go up, and certain cost changes cannot be hedged. For example, how exactly would you plan on protecting yourself against wage increases? It's not like there's a futures market for wages.
- jsmith45 4y ago
  If people could agree on some source of unbiased data about average wages that updates frequently for a job type, then there certainly could be (cash-settlement only) futures based on that value. What seems relatively unlikely is that you will find people willing to offer physical settlement futures! The market would probably also be somewhat shallow, being more speculators than anything else. Basically only groups acting more like insurance companies would be willing to add much to the depth of the market, and obviously they would sell such futures at such a steep premium that is unlikely to be a very useful hedge.
rufus_foreman 4y ago
10-year treasuries, coupon payments reinvested, would have returned 18.156% adjusted for inflation over the same period, https://dqydj.com/treasury-return-calculator/ https://dqydj.com/treasury-return-calculator/. They returned over 36% in 1982 alone!
- bequanna 4y ago
  I’m not sure it is a good idea to buy longer dated govt bonds when we’re in the middle of the most aggressive rate tightening period in a generation.