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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: sandeep who wrote (18740)4/29/2024 7:28:46 PM
From: Sun Tzu2 Recommendations

Recommended By
Cogito Ergo Sum
Kirk ©

  Read Replies (1) | Respond to of 27146
 
If we live long enough every company stagnates for long periods of time


You'd be surprised how many people don't understand this, even some who are supposedly qualified advisors tell people that stocks go up in the long run (they don't and they didn't - SPX *has*. It is not a stock).

Statistically, the most likely price for any stock is zero. No? I can name two dozen blue chips off the top of my head that are not around anymore, let alone small cap stocks.

And statistically, the most likely long term return for any diversified portfolio is also zero. No? Take a look at the value line geometric index which reflects the median price of stocks as a while. How much has it returned over the last 30 years?