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Posted by F. George McDuffee on January 2, 2010, 12:27 pm
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FYI --
For some hard data on the actual return on investment see
http://www.bloomberg.com/apps/news?pid=20601087&sid=azRby9JhxPH0&pos=2
<snip>
Investors who put $10,000 in stocks on Dec. 31, 1999, have $9,090
now, while the same amount in 10-year Treasury notes would have
grown to about $18,000 following a 6.1 percent annualized return,
according to data compiled by Bloomberg. A $10,000 investment in
the Reuters/Jefferies CRB Index of 19 raw materials increased 3.3
percent a year to $13,803. Gold futures rose 14 percent a year,
turning $10,000 into $37,852.
<snip>
===========
Unka George
(George McDuffee)
The past is a foreign country;
they do things differently there.
L. P. Hartley (1895-1972), British author.
The Go-Between, Prologue (1953).
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Posted by BillT on January 2, 2010, 6:26 pm
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On 1/2/2010 9:27 AM, F. George McDuffee wrote:
> FYI --
>
> For some hard data on the actual return on investment see
> http://www.bloomberg.com/apps/news?pid=20601087&sid=azRby9JhxPH0&pos=2
> <snip>
> Investors who put $10,000 in stocks on Dec. 31, 1999, have $9,090
> now, while the same amount in 10-year Treasury notes would have
> grown to about $18,000 following a 6.1 percent annualized return,
> according to data compiled by Bloomberg. A $10,000 investment in
> the Reuters/Jefferies CRB Index of 19 raw materials increased 3.3
> percent a year to $13,803. Gold futures rose 14 percent a year,
> turning $10,000 into $37,852.
> <snip>
That's a very simplistic calculation imho. It does not factor dollar
cost averaging your investing which is the prudent way to invest in AND
out of the market.
I like many, follow the markets at least on a weekly-monthly view. I did
ride the 96 thru 99 "bubble". I used trailing stops on my individual
stocks (as I do today). I also liquidated most of my assets (as did
many) to Treasuries starting in March of 2000 based on Investors
Business Daily's reporting. I then slowly dollar cost averaged back in
to growing sector based mutual funds. A little education is sector
rotation gave a clear signal in 2000 as it did in 1998. By following
sectors you would have got into Apple this year (using a safe trailing
stop) for a nice 100% return! That was my Xmas present to myself.
Investing in gold is fine if you can justify what the perceived value of
gold is. Since it doesn't really back money is not a true industrial
commodity that makes it speculative. Yes, you could have made money in
gold but for me I need to understand its real value otherwise it's Vegas
baby!
--
Bill
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>
> For some hard data on the actual return on investment see
> http://www.bloomberg.com/apps/news?pid=20601087&sid=azRby9JhxPH0&pos=2
> <snip>
> Investors who put $10,000 in stocks on Dec. 31, 1999, have $9,090
> now, while the same amount in 10-year Treasury notes would have
> grown to about $18,000 following a 6.1 percent annualized return,
> according to data compiled by Bloomberg. A $10,000 investment in
> the Reuters/Jefferies CRB Index of 19 raw materials increased 3.3
> percent a year to $13,803. Gold futures rose 14 percent a year,
> turning $10,000 into $37,852.
> <snip>