To begin, I should mention that I am not arguing that "buy and hold" isn't a good strategy for the present day, or that a market crash is imminent. In the current environment, it's pretty clear that the best financial strategy for the average person is to continually contribute to an allotment of funds that track an American index (either mutual funds or ETFs).
However, whenever I ask anyone why the S&P has averaged an annual return of just under 10% for the last 100+ years, I am never given a satisfying answer. Eventually everyone's argument boils down to "well, it always has". But the global financial system has changed dramatically over those 100 years, and there don't seem to be any common thread that can explain the continuous rise in U.S. equities.
Submitted May 05, 2017 at 07:55PM by TrumpsTaxReform http://ift.tt/2qKiOGh
