public stocks are terrible investments

i'll expand more on this in future posts, but turns out the U.S. public stocks have been terrible investments for the last 15 years and I expect they will be for the next 15 years.  

Check out the rise and fall of the S&P 500.

If you just take the last ten years (starting from a really low point in right after 9/11), S&P has only gained 8.32%.  whoa.  A random bond fund would have gained at least half of that in any given year during those ten years.

My advice (and will expand more in future posts): keep a really low percentage of your investments in public stocks.

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3 thoughts on “public stocks are terrible investments

  1. SSayzzz

    Great article. The only suggestion I can make to people is to invest in stock market only if they have real knowledge of the stock they are buying otherwise, its like buying lottery ticket. Faith goes a long way but you have to make choices on common knowledge too. If you can’t keep yourself from buying stock, at least go with index ETF of bon, etc…
    “My advice (and will expand more in future posts): keep a really low percentage of your investments in public stocks.” It gona be interesting, I feel it πŸ˜‰

    Reply
  2. Robin

    best value of money is the present value – so spend it (and it helps the economy, too) πŸ˜‰

    Reply
  3. Walter

    Disagree with you completely! As one would do extensive research before venturing into any business, you should do the same for equities.
    AAPL in 2000 was ~$25, JCP was ~$15, I could go on and on, with that said there are losers as well, and thats where your research comes into picture πŸ™‚
    I think SSayzzz has done a good job of explaining the basics for the novice investor.
    Walter.

    Reply

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