How Often Do You Change A 1 Year Old& 39 Market Numbers Through 2017 – Not Quite As Impressive As You Think

You are searching about How Often Do You Change A 1 Year Old& 39, today we will share with you article about How Often Do You Change A 1 Year Old& 39 was compiled and edited by our team from many sources on the internet. Hope this article on the topic How Often Do You Change A 1 Year Old& 39 is useful to you.

Market Numbers Through 2017 – Not Quite As Impressive As You Think

No one would deny that 2017 was a banner year for the markets… at the end of the year, every stock index was close to all-time highs. Even the WSMSI (Working Capital Model Select Income Index) capital growth number approached 12%.

But let’s step around Wall Street’s promotional banners and look at the numbers for the long term, say this century…

You’ll recall that the period from 1999 to 2009 was called “The Sad Decade” by a Wall Street that simply couldn’t handle the idea that the “shock market” (collectively) could actually reverse over such a long period. time.

Did the “bull market” that emerged from the dismal decade really deliver the kind of profits you’ve heard about?

· From 1999 to 2009, the NASDAQ (home of “FANG” type companies forever since) shrank by a whopping 34%. From 1999 to 2017, it was the worst performing index of all indices, up just 71%, an average of less than 3% per year. Thus, even the spectacular 160% increase in market value since 2009 did not bring spectacular long-term performance.

· Between 1999 and 2009, the S & P 500 (although less speculative than the NASDAQ as a whole) lost a staggering 39% of its value. Recovering faster than the NASDAQ, the S&P has gained approximately 94% in market value over the past 18 years, an average of less than 4% per year. So there’s not much to celebrate in the S&P either… for long-term investors.

· Between 1999 and 2017, the higher-quality DJIA suffered less than other indexes during the depressing decade, losing an average of less than 1% per year. But the overall performance of 18 years of 115% market value growth averaged less than 5% per year. It reflects higher quality content, yes, but overall it’s not that impressive.

So what about the income investing approach over the same two periods?

· From 1999 to 2017, a $100,000 portfolio of closed-end funds (CEFs) paying roughly 7% annually, compounded annually, would have grown the invested capital to roughly $340,000 by the end of 2017… a 240% gain in working Capital, and nearly three times the average long-term profit of the three stock averages!

· Over the dismal decade itself, a $100,000 income CEF portfolio paying 7% compounded annually would have grown roughly 111% (10% annually) in investment capital.

· Note that the average annual return of roughly 13% is based on annual rather than monthly reinvestment of earnings… so it would actually be even higher. Hmmm, makes me think a bit, doesn’t it?

Now some what ifs:

· What if you lived off your portfolio income or growth anytime before mid-2010?

· What if you lived off 4% of your portfolio’s “growth” or “total return” before the end of 1999, how much would you have left at the start of the 2010 rally?

· What if we don’t get several years of double-digit market growth for equity markets to catch up to the above income figure?

· What if the market doesn’t forever produce a “total return” greater than your spending needs?

· What if your portfolio contained enough income securities to cover expenses combined with higher quality stocks than those in the Dow?

· What if the stock market corrects again this year?

Video about How Often Do You Change A 1 Year Old& 39

You can see more content about How Often Do You Change A 1 Year Old& 39 on our youtube channel: Click Here

Question about How Often Do You Change A 1 Year Old& 39

If you have any questions about How Often Do You Change A 1 Year Old& 39, please let us know, all your questions or suggestions will help us improve in the following articles!

The article How Often Do You Change A 1 Year Old& 39 was compiled by me and my team from many sources. If you find the article How Often Do You Change A 1 Year Old& 39 helpful to you, please support the team Like or Share!

Rate Articles How Often Do You Change A 1 Year Old& 39

Rate: 4-5 stars
Ratings: 4527
Views: 73736069

Search keywords How Often Do You Change A 1 Year Old& 39

How Often Do You Change A 1 Year Old& 39
way How Often Do You Change A 1 Year Old& 39
tutorial How Often Do You Change A 1 Year Old& 39
How Often Do You Change A 1 Year Old& 39 free
#Market #Numbers #Impressive

Source: https://ezinearticles.com/?Market-Numbers-Through-2017—Not-Quite-As-Impressive-As-You-Think&id=9861802

Related Posts

default-image-feature

How Long Should A 1 Year Old Have A Fever How Long Will My Inflatable Hot Tub Last?

You are searching about How Long Should A 1 Year Old Have A Fever, today we will share with you article about How Long Should A 1…

default-image-feature

Do I Need Beach Cart With A 1 Year Old Harbour Island Bahamas – Best Kept Secret

You are searching about Do I Need Beach Cart With A 1 Year Old, today we will share with you article about Do I Need Beach Cart…

default-image-feature

How Often Do You Breastfeed A 1 Month Old Baby Choosing an Assisted Living Home For Your Elderly Parent

You are searching about How Often Do You Breastfeed A 1 Month Old Baby, today we will share with you article about How Often Do You Breastfeed…

default-image-feature

How Long Should A 1 Year Old Cry It Out Funny Quotes

You are searching about How Long Should A 1 Year Old Cry It Out, today we will share with you article about How Long Should A 1…

default-image-feature

Do I Need A Passport For My 1 Year Old The Chinese American Without a Chinese Name

You are searching about Do I Need A Passport For My 1 Year Old, today we will share with you article about Do I Need A Passport…

default-image-feature

Do I Let My 1 Year Old Cry To Sleep Christian Faith, Bipolar Disorder, and Schizophrenia – Part One

You are searching about Do I Let My 1 Year Old Cry To Sleep, today we will share with you article about Do I Let My 1…