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Do you know why the stock market has returned 7% on average? Or do you just think that, since it returned 7% on average in the past, it must do so in the future
by freyr 13y ago
Do you know why the stock market has returned 7% on average? Or do you just think that, since it returned 7% on average in the past, it must do so in the future?
The U.S. has held a very privileged position in the world economy over the past century, which has fueled tremendous growth. You're basically betting that the U.S. continue to be a "growth" stock over the next 25 or 50 years, and continue to see huge gains in productivity and global competitiveness.
It's not a completely crazy idea, but it's not the sure bet you make it out to be, either.
- j_rogers 13y agoRegardless, it is surely better to bet on the stock market continuing to rise, even if more slowly than in the past, than it is to bet that the startup you're working for is going to be successful.
- meowface 13y agoBarring a massive crisis, catastrophe, or war, it is indeed likely that the US will continue to be a growth stock for many decades to come. It's a much safer bet than many other things.
- dmmalam 13y agoInvest outside the US. India & China at-least will be growing 7%+ Y/Y for a quite a while. Add the rest of asia, S america, and africa, and there are tons of great investment opportunity. Heck currently euro zone bonds are making a killing.