Thread: Investing 102
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Old 01-15-2012, 09:28 AM
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GregWeld GregWeld is offline
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Default Interesting statistic

I found this and clipped it from an article.... and I have two takeaways from it:

Long term - and being counter or contrarian investor (I have LEARNED to be somewhat of a contrarian)... and maybe a third takeaway - eventually your earned interest/dividends will add more than you can on your own!

+++++++++++++++++++++++

As the past two centuries have shown, there has never been a 15-year period in which stocks delivered losses. That means when an investor buys in a given year, they can be reasonably certain of earning positive returns on their investment within 15 years—with gains ranging from just above zero to over 100%. Averaging the returns over the long run works out to 7% to 9% per year.

Investments made during the bullish phases are more likely to have long-term results closer to the zero bound. Conversely, investments made during the bearish phase are more likely to end up closer to the 100% level.

Not to be overlooked is the compounding of returns. Someone investing a portion of their income each year has a good chance of finding that, after 15 to 20 years, the return on their portfolio rather than salary deductions, is making a greater contribution to their retirement fund.
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