Showing posts with label stock returns. Show all posts
Showing posts with label stock returns. Show all posts

Monday, September 10, 2012

You are likely 89% better off than you were 4 years ago

We are less than 2 months away from the election and we will all ask ourselves, "are we better off than we were 4 years ago?"  I can give you one statistic that answers that question with a firm "yes."  The US stock market, as measured by the total return of the S&P 500 Index, is up an astounding 89.0% from 1/20/2009 (Obama's inauguration date) through 8/31/2012.  If you have any money in a 401(k) or IRA or any other investments, you are likely MUCH better off than in 2008. 

I've personally saved a lot of money on underwear the past 4 years as well.  In 2008, whether it was bankruptcies of Lehman Brothers, AIG, or GM, freezing of the credit markets, or simple money market funds breaking the buck, at least one headline per week made me poop my pants.  Is everything perfect in the government and the economy?  Certainly not.  But, we've come a long way baby!

Monday, January 23, 2012

Finance Clippings: Stocks for the long run?

Below is excellent advice for everyone from my favorite professor of finance - click the link below.
(My best guess is stocks could return 6-8% over the long run based on current dividend yields of 2-3% combined with estimated corporate earnings growth of 4-5%.)

Finance Clippings: Stocks for the long run?: A recent post on the Fama French Forum asks " over what time period can you be reasonably assured of earning a positive premium for investin...