I have written many times before on the futility of market timing. The saying that time in the market is so important than timing the market couldn’t be understated. Market timing is impossible to achieve because an investor has to be right twice. Once when they sell stocks and again when they re-enter the markets. …
During high inflationary periods such as the one we are currently in now, many investors are in search of assets that would help them earn returns that are equal to if not better than the inflation rate. While bonds provide fixed income on a regular basis and the principal invested is safe for the most …
Continue reading ‘Stocks vs. Bonds: Which is Better To Beat Inflation?’ »
One of the strategies for building long-term wealth is to invest in stocks. While there are many markets to invest in for American investors, the US equity market has generated excellent returns in the past and continues to remain strong. In a recent post, I noted how US stocks as represented by the Dow have …
Continue reading ‘Calendar Year S&P 500 Index Returns 1926-2021: Chart’ »
Equity markets can be volatile in the short run. But traditionally they tend go higher in the long run. That is why it is always wise to hold stocks for the long term. The following chart shows the annual total returns of the S&P 500 from 1926 to 2020. The histogram shows the number of …
Continue reading ‘S&P 500 Total Return Ranges by Year from 1926 to 2020: Chart’ »
Equity markets go through periods of bull run followed by mauling by the bear for some time. Then the bull market returns followed by bear market again. This cycle continues over the years and decades. The duration of bull and bear markets vary but traditionally the bull has stayed longer than the bear as we …
Continue reading ‘Performance of US Stock Market and Crisis Events since 1936’ »