Re:Ask HN: What's the most valuable thing you can learn in a...
by hn_throwaway_99 on Wednesday November 20, 2019 @10:10AM
(#21584535)
> The S&P500 with dividends reinvested has averaged a real (post-inflation) return of 7% annually over the last 100 years or so.
TBH I don't think looking at the last hundred years is particularly valuable. Nobody invests over a hundred year timespan. Most importantly, look at a graph of interest rates over the past 40 years. There is a fundamental "new normal" of extremely low rates (or, rather, negative rates for much of the world), making it extremely difficult to earn that 7% without taking on a very large amount of risk.
TBH I don't think looking at the last hundred years is particularly valuable. Nobody invests over a hundred year timespan. Most importantly, look at a graph of interest rates over the past 40 years. There is a fundamental "new normal" of extremely low rates (or, rather, negative rates for much of the world), making it extremely difficult to earn that 7% without taking on a very large amount of risk.