tag:blogger.com,1999:blog-37697766.post8857512751011224495..comments2023-10-01T07:59:30.295-07:00Comments on Grad Money Matters: Campaign Against Financial Myths: Part 6 - Stock Market InvestingUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-37697766.post-77632597190879761982007-07-27T20:54:00.000-07:002007-07-27T20:54:00.000-07:00Jon: You've got a point!The article I mentioned to...Jon: You've got a point!<BR/><BR/>The article I mentioned took all the annual data, and instead of computing the average over the entire period, did it over rolling 20 year periods. I think the intention was to show that the commonly used phrase <I>"...the stock market has historically returned 10.7%..."</I> - really means nothing! Your point makes this even more obvious!ispfhttps://www.blogger.com/profile/00928097981905476759noreply@blogger.comtag:blogger.com,1999:blog-37697766.post-31383519232523379062007-07-27T05:28:00.000-07:002007-07-27T05:28:00.000-07:00Regarding the myth about the stock market returnin...Regarding the myth about the stock market returning 10.7%, I'm curious about one thing: Did the study assume that for any given 20 year period you just dumped all your money in at the start and then let it sit?<BR/><BR/>In real life, you invest a certain amount periodically, such as monthly or quarterly. Each time you make a contribution, a new 20 year period starts. Even the worst-case period you mentioned (3.1%) only affected one cycle -- the next year's contribution could have earned 15%.Jonhttps://www.blogger.com/profile/03060882352687149007noreply@blogger.com