http://theunbrokenwindow.com/2008/05/07/investing-in-the-market/ The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. - F.A. Hayek Thu, 28 Aug 2008 11:12:25 +0000 http://wordpress.org/?v=2.3.3 http://theunbrokenwindow.com/2008/05/07/investing-in-the-market/#comment-247 wintercow20 Wed, 07 May 2008 15:14:46 +0000 http://theunbrokenwindow.com/2008/05/07/investing-in-the-market/#comment-247 The "market" has generated a "real" return in excess of seven percent per year over the last 80 years. Even if you only do half as well as the market, your living standards will double every 20 years. If you do just as well as the market, your living standards will double every 10 years! Compare this to the rate of economic growth prior to the Industrial Revolution (i.e. living standards barely improved for thousands of years) or even current rates of economic growth in industrialized nations (roughly 3% per year) and the wealth one can obtain by prudently investing is mind-boggling. The interesting question for the readers is, how can the "market" continue to provide real returns of 7% or better when the overall real economy does not grow that fast? Any takers? The “market” has generated a “real” return in excess of seven percent per year over the last 80 years. Even if you only do half as well as the market, your living standards will double every 20 years. If you do just as well as the market, your living standards will double every 10 years!
Compare this to the rate of economic growth prior to the Industrial Revolution (i.e. living standards barely improved for thousands of years) or even current rates of economic growth in industrialized nations (roughly 3% per year) and the wealth one can obtain by prudently investing is mind-boggling.
The interesting question for the readers is, how can the “market” continue to provide real returns of 7% or better when the overall real economy does not grow that fast? Any takers?

]]> http://theunbrokenwindow.com/2008/05/07/investing-in-the-market/#comment-246 Invest Tool Wed, 07 May 2008 15:06:17 +0000 http://theunbrokenwindow.com/2008/05/07/investing-in-the-market/#comment-246 the matter is if we are not able to beat the market, become rich is only a dream. the matter is if we are not able to beat the market, become rich is only a dream.

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