Investing Returns on the S&P500

Post by [deleted] » Wed, Jun 29, 2016, 2:44 PM UTC

chollida1 wrote: post #16

ozten wrote: post #11

Does the stock data used suffer from Surviver bias? That is a free download of historical data that lacks failing, delisted companies of the past.

This is a good question. The S&P 500 kind of dodges this question by its very nature. The S&P 500 constantly changes the stocks it holds. So if a stock falls out of favor, say Sears, its dropped from the index. It's also important to Note that comparing the S&P 500 from 100 years ago to today is very naive as the methodology for what it holds has changed significantly over the years. Comparing the returns of the S&P…

Post by inthewoods » Wed, Jun 29, 2016, 2:45 PM UTC

jdmichal wrote: post #54

smpetrey wrote: post #43

Earlier quoted context omitted.

Well for one, it's about disruption and change. The creators are more than familiar with brokerage, and it shouldn't be a shocker that most brokers do not operate trades, it's mostly electronic.[1] If you're going to hold stocks for years, why not skimp on an $8 commission? If you make a purchase of 100 shares of $FB, it could save you at least $800 for that sale. So the real question is, why not? [1] https://www.you…

> If you make a purchase of 100 shares of $FB, it could save you at least $800 for that sale. That's not how commissions work. They are per order, not per share.

Post by Steuard » Wed, Jun 29, 2016, 2:47 PM UTC

dforrestwilson wrote: post #36

maxxxxx wrote: post #22

Looking at the discussions here I find it interesting that even in something as number driven as the stock market everybody argues about the meaning and the validity of the numbers. There really is no clear picture. But somehow the regular guy is supposed to navigate his way through this jungle of conflicting, confusing or meaningless numbers. And considering the long time frames most people don't have much opportuni…

1. If you're right 51% of the time when you invest you're going to get rich. Unfortunately the odds of you being right 51% of the time are incredibly low. 2. Heed Rule #1, and put most (if not all) of your money in broad market ETFs. 3. If you DO decide to actively invest, think about your strengths both in terms of character and industry knowledge and play to those. I don't know jack about healthcare and have had my…

Post by charlesdm » Wed, Jun 29, 2016, 2:49 PM UTC

dforrestwilson wrote: post #36

maxxxxx wrote: post #22

Looking at the discussions here I find it interesting that even in something as number driven as the stock market everybody argues about the meaning and the validity of the numbers. There really is no clear picture. But somehow the regular guy is supposed to navigate his way through this jungle of conflicting, confusing or meaningless numbers. And considering the long time frames most people don't have much opportuni…

1. If you're right 51% of the time when you invest you're going to get rich. Unfortunately the odds of you being right 51% of the time are incredibly low. 2. Heed Rule #1, and put most (if not all) of your money in broad market ETFs. 3. If you DO decide to actively invest, think about your strengths both in terms of character and industry knowledge and play to those. I don't know jack about healthcare and have had my…

Post by UK-AL » Wed, Jun 29, 2016, 2:51 PM UTC

soVeryTired wrote: post #47

stevenmays wrote: post #6

Earlier quoted context omitted.

If you're in Japan you can still invest in the US stock market... and should to diversify. I invest in international markets even though I am in the U.S.

Just to point out to people who may not be aware, this leaves you open to currency risk. The FTSE 100 dropped 3% in GBP terms last week, but maybe 10% in USD terms. This cuts both ways of course: you can make money on favourable currency moves. But it's an important risk to be aware of before buying assets in a foreign currency.