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Looking at the S&P chart since the 1920's there have been several decade periods where he would have lost the bet. The increase in the past 20 years has coinci
by helsinkiandrew 3y ago
Looking at the S&P chart since the 1920's there have been several decade periods where he would have lost the bet. The increase in the past 20 years has coincided with ever lower interest rates - which may have ended.
https://www.macrotrends.net/2324/sp-500-historical-chart-data https://www.macrotrends.net/2324/sp-500-historical-chart-dat...
- bravura 3y agoJust curious, would you have to adjust the values for inflation with these numbers? i.e. to compute the percent of starting years for which 10 years of holding the S&P 500 would underperform 36.3% (the average of the 5 hedge fund-of-funds)?
- DeathArrow 3y agoWhat if hedge funds would lose even more in those periods?
- jjice 3y agoFor a 10 year bet, that's a fair point. Tangentially, over the course of an individual investor's working years, I think this shows that the S&P 500 is pretty good, if paired with appropriate bond allocation as your move towards retirement.
- raphaelj 3y agoYour graph does not show the real return of the SP500, as it does not include dividends.