Comments (2)

  1. Roderick A. McLeod says:

    Excellent aRticle. Keep them coming.

  2. Jon E Carlson says:

    David, Regarding your alarming statement and subsequent argument: ‘It may also surprise you that because of the recent “value restoration process”, the vaunted S&P 500 has now had a twenty-year return of just 4.6%!’, I challenge the validity of your conclusions. As you know, you are comparing a -20 year local High, with a current local low. I ran the numbers as well, using Excel’s RRI function and Historical data from Yahoo per the date of your article, and came up with the following: +3.42% for the past 20 years (yes, lower than your number), +8.96% for the past 10 years, 7.21% for the past 30 years, and 8.45% for the past 40 years. I suspect that the majority of your clients would be very happy with the 7-9%, which is a fairer representation of actual return on long-term investment.

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