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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Steve Warkentin who wrote (2256)12/2/1997 3:03:00 AM
From: Greg Luke  Read Replies (1) of 42834
 
You illustrate my point perfectly. You look at the last 3,5, or even 10 year return on the S&P 500 and it looks good. But look deeper:

quote.yahoo.com^DJI&d=my

You will see a lot of flat years or even negative years in the last 25. If you think index funds are a guaranteed 20% return "money machine", the charts prove you wrong.

But, hey, if you want to turn that $25,000 your grandfather left you when you were 25 into $100,000 by the time you are 50 or 60, then leave it in an index fund. But, if you had purchased Intel, you would have made $1000 today. That is how you get to critical mass. And knowing when to buy and when to sell is an area where Fools rush in, but Mr. BB helps the rest of us lightly tread.

Greg
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