by rangerone314 » Thu 14 May 2009, 09:57:12
$this->bbcode_second_pass_quote('AAA', 'T')his graph proves to me a disciplined investing strategy will be very profitable.
People doubled their money in the S&P 500 in less than 4 years (1996-2000).
Then almost doubled their money AGAIN from 2003-2008.
If someone is too greedy to take some profits after 100% return twice in 10 years then they deserve to loss some.
Point well taken...
It does seem (at least for the 13 year period) that buy and hold is a strategy that will lead to poverty (due to inflation which is itself, understated, but that is another story)
Part of the problem is the zero-sum game issue... you start out at point A in 1996 and end up at point A in 2009. Sure some people will make money, but for that to happen, somebody had to lose money. It is not quite the same issue had the graph gone higher by 2009...
I have to wonder about GDP when taking the national debt into account, trade deficit, social security, and deteriorating roads, bridges, powergrid, steampipes, waterpipes... what would the GDP be if we actually counted Depreciation of our assets, like a corporation.
IE if we did an actual national balance sheet (listing assets, liabilities & equity) and an income statement (listing income & expenses-including asset depreciation), what would the result be?
The way the gov runs things, they would have a fleet of cars and not pay $50 for oil changes each quarter, and would rather let the engine explode in X years and let a future gov deal with the buying new cars, all the while presenting a rosy picture now.
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right
Equals barter and negotiate-people with power just take
You cant defend freedom by eliminating it-unknown
Our elected reps should wear sponsor patches on their suits so we know who they represent-like Nascar-Roy