http://www.nytimes.com/interactive/2011/01/02/business/20110102-metrics-graphic.html? Hadn’t seen things laid out like this before.
notice as the time horizon gets longer, the more it reverts to the median. Also notice how it trends starting with above average (green) to below average (red) back and forth. Most peoples time horizons for investing is longer than 20 years anyways and more than likely they will earn the LT average.
cubsfish Wrote: ------------------------------------------------------- that’s a nice visual
one of you smart guys figure out for me how many years I need to compound @ 10% to equal the 20 year 4.1% return. Math is hard for me
1.1^x=1.041^20 x=20 ln 1.041/ln(1.1) = 8.43 years
thx cp. and thx for all the lvl 2 help in the forum. counldn’t have made it without ya
damn…beat me to it…8.432 years
Nice chart