If we look back at the short term since the inception of things like Dow Jones industrial average or S&P 500 index, it has certainly risen since its inception until now. The question is, will these market index markers continue to increase indefinitely?
For example, we may simply look at the past and make the assumption that Dow Jones will reach 900,000 in 35 years, which may or may not occur (because if that is the case, why wouldn't anyone simply dump as much money as possible into these indexes for an almost GUARANTEED long term return of gargantuan magnitude).
If individual companies grow and bust but the market index only picks the strongest of players, what would it take for this indefinite increase to be not a reality? Are we talking about a financial crash that will remove the USA from the global financial stage or the US Dollar weakened to a degree where it will no longer hold significant meaning in the global currency sense? Similar to the crash experienced by Japan? Or perhaps a stagnation in discovery and invention where no further advancements are possible?
Submitted January 01, 2021 at 01:24AM by meikawaii https://ift.tt/34XOttk
