Fulton Associates

Monday, June 23, 2008

Index Investing

DOW and S&P500 have returned only 20% and 40% over the past 10 years. That is while you need 35% cumulative return just to keep up with an inflation of 3%. In other words, these indexes have returned nothing over the past decade! Isn’t that interesting?

2 Comments:

At June 24, 2008 at 4:22 PM , Blogger Junk Bonds said...

Dividends should have returned about 1% after tax :)

 
At July 1, 2008 at 9:15 PM , Blogger Arash said...

Yes, but also you should deduct commissions, fees, MERs, etc;)

 

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