A marathon indeed

September 13, 2009 at 10:19 am Leave a comment

Something to ponder. S&P 500 is about 1000 now in 2009. Where will S&P be in year 2100?

If we stick to a long term average growth of 4% p.a., which means the index will double in approx. 18 years. S&P 500 will be about 32000 in year 2100.

I am not kidding you, provided that the 4% p.a. assumption is correct. So, the S&P needs to grow just about 1% per quarter or 0.33% per month for this target to be reached, which isn’t too hard. But ppl likes to make simple things harder than it seems. Thus, we have all these bull and bear markets with all the heart-thumping fluctuations.

So, you need to run the marathon at a steady pace you are comfortable with and not to be bothered by those that are running at a frantic pace with two step forward and one step back. In the end, the finishing line is the same. However, caveat emptor, you need to be old enough to see 32000, which i doubt i will be.


Entry filed under: Investing.

dbs is at it again Raffles Education in trouble

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