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By (user no longer on site)
over a year ago
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Double it? I’ll get 20 times the value my friend.
I’d buy some M&S multipack women’s thongs, go for a long run, wipe the gussets in my post-run arse sweat, and sell them on as “genuine women’s used knickers”
Kerching! |
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"Double it? I’ll get 20 times the value my friend.
I’d buy some M&S multipack women’s thongs, go for a long run, wipe the gussets in my post-run arse sweat, and sell them on as “genuine women’s used knickers”
Kerching! "
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The S&P 500 Index, the most widely followed index of blue chip stocks returned about 9.8% annually (including dividends) from 1928 to 2020, while investment grade corporate bonds returned 7.0% annually over this 93-year period.
Thus, a classic 60/40 portfolio, 60% equities, 40% bonds, would have returned about 8.7% annually during this time.
Based on the Rule of 72, such a portfolio should double in about 8.3 years and quadruple in approximately 16.5 years.
Note, however, that a significant amount of volatility generally accompanies such sterling results.
Investors should brace themselves for occasional sharp drawdowns, such as the 35% plunge in the S&P 500 within a six week period in the first quarter of 2020 as the coronavirus pandemic erupted worldwide.
In addition, very high returns compared with the historical norm may reduce the potential for future returns.
For example, the S&P 500 recovered from its 2020 plunge in record time and powered its way to new record highs by year end 2020.
Although it returned a jaw dropping total return of 100% from 2019 to 2021, such stellar returns may mean that future returns from the S&P 500 could be significantly lower.
I’d cash out when it’s doubled. |
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