Here is a good article about the S&P 500 Index, and why you should be invested in it. There is quite a bit here I didn't know about the index, but it reinforced my view that it should be the foremost holding of any portfolio.
This fund is usually named something like "Large Cap Index Fund" in a 401k account.
They say we should buy low and sell high, but almost no one does it. So as my stock holdings crashed in 2008 I thought to myself, what if I tried it? What if I actually buy stocks when they are low and sell them when they are high, instead of just saying one ought to? It may be crazy but that is just the real life experiment unfolding here. In 30 short years we shall know the answer! Here are the results so far.
2010 Rate of Return: 17.0% (S&P 500 was 14.72% Total Return)
2009 Rate of Return: 29.4% (S&P 500 was 26.46% Total Return)
2009 Rate of Return: 29.4% (S&P 500 was 26.46% Total Return)
Tuesday, December 7, 2010
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