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To: Robohogs who wrote (117827)2/4/2014 8:22:41 AM
From: bruwinRespond to of 118717
 
If you say so Jon ....

In my part of the world, where our stock market is far smaller than in the USA, we have several more general ETF's, such as the Satrix 40, the Satrix Industrial, the Satrix Financial, etcc.

They have, in recent medium term periods, reported ongoing previous 12 month gains anywhere between 15% and 25%.

Obviously one can never predict absolute future percentage gains. In one year it may be 10% to 12% and in another it could be 25% to 30%.

But at the end of the day, for a younger person, they should certainly do better for themselves by putting some of their earnings into an Index related ETF rather than spending excessive amounts on a fancy motor car, for example, which will lose a reasonable percentage of its purchase price by the time they've driven it out of the show room.

It's very much a case, IMO, of a younger person taking advantage of their age, with several decades in front of them, such that they can gain the major benefit of Compounding their investment gains.