Comments on: Compound Interest Week: Real Interest Rates of the Stock Market http://www.lazymanandmoney.com/compound-interest-week-real-interest-rates-of-the-stock-market/ Saving, Earning, and Investing Money Sat, 21 Nov 2009 00:22:17 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Bullish Bankers http://www.lazymanandmoney.com/compound-interest-week-real-interest-rates-of-the-stock-market/comment-page-1/#comment-94112 Bullish Bankers Sat, 26 Jul 2008 07:11:43 +0000 http://www.lazymanandmoney.com/compound-interest-week-real-interest-rates-of-the-stock-market/#comment-94112 Contrary to belief, we do need recessions every now and then. It's foolish to think that things can always go up, it will just get you burned in the long run. Good post, really puts things in perspective. Contrary to belief, we do need recessions every now and then. It’s foolish to think that things can always go up, it will just get you burned in the long run. Good post, really puts things in perspective.

]]> By: Lazy Man http://www.lazymanandmoney.com/compound-interest-week-real-interest-rates-of-the-stock-market/comment-page-1/#comment-10492 Lazy Man Fri, 18 May 2007 23:59:25 +0000 http://www.lazymanandmoney.com/compound-interest-week-real-interest-rates-of-the-stock-market/#comment-10492 Just to leave a couple of sources for the 12% returns see that <a href="https://flagship.vanguard.com/VGApp/hnw/FundsSnapshot?FundId=0040&FundIntExt=INT" rel="nofollow">Vanguard's S&P 500 has returned 12 % since 1976 (inception)</a> and <a href="http://allfinancialmatters.com/2007/04/06/more-sp-500-index-stats/" rel="nofollow">numbers crunched from JLP of AllFinancialMatters</a>. Note that he later has REAL rate of 9.22%. It is only the S&P 500 measured here, not "the market". However, returns on small caps are supposed to have higher returns than large caps (countless sources say this is true, I don't have the time/space to go into it hear) and the S&P 500 has just finally got to the point of topping new highs while the Dow has been doing it for some time. This suggests that the largest caps have outperformed the S&P along with the small caps. Thus while the S&P 500 might not be "the market" it stands to reason that it's in the range of the average market returns. Some things probably perform worse, but there are certainly some things that perform better. Just to leave a couple of sources for the 12% returns see that Vanguard’s S&P 500 has returned 12 % since 1976 (inception) and numbers crunched from JLP of AllFinancialMatters. Note that he later has REAL rate of 9.22%.

It is only the S&P 500 measured here, not “the market”. However, returns on small caps are supposed to have higher returns than large caps (countless sources say this is true, I don’t have the time/space to go into it hear) and the S&P 500 has just finally got to the point of topping new highs while the Dow has been doing it for some time. This suggests that the largest caps have outperformed the S&P along with the small caps. Thus while the S&P 500 might not be “the market” it stands to reason that it’s in the range of the average market returns. Some things probably perform worse, but there are certainly some things that perform better.

]]> By: The Happy Rock http://www.lazymanandmoney.com/compound-interest-week-real-interest-rates-of-the-stock-market/comment-page-1/#comment-10421 The Happy Rock Thu, 10 May 2007 21:52:22 +0000 http://www.lazymanandmoney.com/compound-interest-week-real-interest-rates-of-the-stock-market/#comment-10421 I found the idea and implementation of prosper.com very intriguing. I think want to here a few more lessons learned stories before I would jump in. I also wonder how much time it will take to manage you investment there? Thanks for the hard work. -The Happy Rock I found the idea and implementation of prosper.com very intriguing. I think want to here a few more lessons learned stories before I would jump in. I also wonder how much time it will take to manage you investment there?

Thanks for the hard work.
-The Happy Rock

]]>