Securities markets can be very cruel, as we are now learning. Some calculations

Le post discute des risques des marchés boursiers et de l'importance de la diversification, en comparant les rendements de différents investissements depuis 1998.

This is not the first significant stock price decline in my life, and I hope it is not the last either. It is a good reminder to us that 1) securities markets can be very cruel 2) holding a straight 100% stock portfolio through thick and thin is not as easy as it sounds 3) Retired stockholders are NOT guaranteed a stable and happy retirement. If I may add, cash-holding retirees may find themselves in an even worse position eventually. 4) We, (the Americans) may be collectively not as rich as we thought Since January 1998, S&P 500, with dividends reinvested without tax, returned 800.517%, according to "S&P 500 Return Calculator, with Dividend Reinvestment" by dqydj DOT com. An ounce of gold increased in price from $299 in Jan 1998, to today's $3,438. That is a 1049.8% return. During the same period. Berkshire Hathaway returned 1,478.45%. If one had to pay taxes on dividends, the return for S&P 500 would be somewhat lower depending on your tax rate.