| | In Post 19, Hong wrote, Like Mike, I am also not stock market savvy. The only thing that I could have done is probably mutual funds. But given the pathetic performance of the stock market in last several years, we probably would lose money anyway. I'm not sure what you mean by "last several years," but if you had invested $100,000 four years ago in any of the standard index funds, like the Russell 2000, the Nasdaq or the S&P 500, not only would you not have lost money, but your investment would have appreciated as follows:
During that period, the Russell 2000 rose over 110%, the Nasdaq, over 80% and the S&P 500 almost 70%, for an annualized rate of return of over 20%, 16% and 14%, respectively. That means that if you had invested $100,000 in the Russell 2000, you would now have over $210,000; if you had invested it in the Nasdaq, you would have over $180,000; and if you had invested it in the S&P 500, you would have almost $170,000. How much longer this "cyclical" bull market will last is anyone's guess, but it's done great since 2003.
- Bill
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