so if you don't think you can beat 7% you should just throw your money in bonds and index funds right?
So if you don't think you can beat 7% you should just throw your money in bonds...
Yes but it takes at least 7-10 years of dollar cost averaging before the probability is on your side
i think if u mess around with commodities and get a feel for market trends, you can do far better than 7% easily , if u can predicts up and downs for shorts, you can easily do 1% a day or week .
Or mix term life, real estate, mutual funds, REIT, and not more than 10% on pure speculation.
Your account will be closed in less than a year using this thought process.
If you're truly interested in finance and want to challenge yourself to attempt to beat a 7% 5-year / 10-year ROI, then I'd suggest you bite the bullet and try to do it.
If you aren't interested, then go ahead and throw it into index funds and bonds.
Nigger 7% was a meme back from pre-globalization and during QE (2009-2014). You'll never see an average of 7% again.
what's the number now?
I know the future
There will never be growth anywhere ever again
I agree that US stocks arent very exciting now, but I have no doubt they will continue to rise and fall.
7% is historical avg, since like 1917 or something, it includes the big dips in the early 60s, 80s, 90s.
Here is one of my extremely conservative accounts.
easily 1% a day
Doesnt it physically hurt you if you write stupid shit like this?
The historical average was before the internet allowed us to automate and outsource. The housing bubble kept us up when salaries dipped, then QE kept us up when that crashed. There's no actual growth left for US stocks, we'll have a massive crash then 2-3% growth per year.
Look what happened to Nikkei in 19-fucking-89. They're a first world nation with the third highest GDP in the world yet they still haven't caught up to their value from 27 years ago.
After taxes, you get about 3%. Any average person that actually thinks they can get 7% per year is a huge moron.
Capital Gains tax is like 15%. Calm down Kevin
Im sure those growth rates were only because of these factorsand there will never be another trend like this in human history again. Makes sense.
how long you been trading on the stock market?
just out of curiosity.
that was an average bty.
you don't think you should be able to make at least 365% profit on your starting sum every year?
if you cant project to do that with your trading/investing strategy, you should probably get out the game and leave things to the big dogs .
Because a 90/10 stock/bond portfolio with dividends reinvested has averaged closer to 11% over the last 92 years.
And thanks to compounding, 11% is big fucking difference from 7% over any number of years.
So, citation required.
if you average 1% a day, it would be 3778% of your initial sum in a year.
You clearly can't into math and propably suck at trading aswell.
he's in town tonight but im missing out
In this bull market? It should be a joke to beat that.
Not saying this as some kind of millionaire or some shit but like today I made 20% gainz just buying shares in a biofarm company that got euro approval on a drug as the news was being accounced, I'm gonna sell tomorrow at open because im not greedy but I could hold on for the the shares to increase even more than that if I wanted to. Some are projecting the price to double if they get approval.
Buy good companies when they are oversold, or buy companies you know are going to bounce back in price even if they aren't that great(AMD for example).
Sell when you hit an acceptable threshold, dont hold trying to become a millionaire.
You tell him, girlfriend.
you got lucky once, but won't make a constant gain like this over a longer period of time, mark my words.
If you're starting each year with ten thousand dollars, and have an exceptional understanding of the particular market you intend to invest in, yeah, maybe.
Otherwise, kill yourself, you are too stupid to exist.
I've been consistently doing this for a while now, its not very hard.
People think headphone jack is going to actually cause apple to crash, made money off that
People thought AMD was finished when they actually paying back more debt than usual just because there zen architecture was disappointing
People thought the fed wasn't going to increase rates, bought gold and sold before the actual conference(probably would have made more if I held on to it but once again I'm not trying to make risky plays)
Anytime a biotech company is about to get approval for a drug, I buy when the news of pending approval comes about and sell before the decisions(yes I've missed out on 1000% gains when a drug does do really well but once again I play it safe)
Don't put money into stupidly risky companies, dont put money into big corps when they pushing high numbers(wait for some kind of news to lower the stock price and sell when it returns), fundamentally you should be investing in companies that operate well and if you can, invest in companies that you see in your daily life.
at least 365% profit on your starting sum every year?
Math, not even once. If you can make a 1% profit everyday for a year you'd have beaten out ALL other investors, even the big fish. Why do you people lie on here? It's not as if it's gonna make you any money.
Stop posting on Veeky Forums.
7% in this interest rate environment kek