Comments on: What stock market return should we expect? http://www.obliviousinvestor.com/what-stock-market-return-should-we-expect/ Investing Blog: The Oblivious Investor Thu, 29 Jul 2010 15:54:20 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Rick Francis http://www.obliviousinvestor.com/what-stock-market-return-should-we-expect/comment-page-1/#comment-1520 Rick Francis Thu, 28 May 2009 19:32:56 +0000 http://www.obliviousinvestor.com/?p=4563#comment-1520 @B7 If you give up on stocks because they are unpredictable you are going to be stuck with lower, but predictable returns. There has to be additional compensation for that unpredictability or no one would ever invest in stocks! Why not plan using the lowest estimate? If you can reach your goals with a 7.5% annual return then you will have far more than you need if the market fairs better. -Rick Francis @B7 If you give up on stocks because they are unpredictable you are going to be stuck with lower, but predictable returns. There has to be additional compensation for that unpredictability or no one would ever invest in stocks!

Why not plan using the lowest estimate? If you can reach your goals with a 7.5% annual return then you will have far more than you need if the market fairs better.

-Rick Francis

]]> By: Miranda http://www.obliviousinvestor.com/what-stock-market-return-should-we-expect/comment-page-1/#comment-1519 Miranda Thu, 28 May 2009 15:59:00 +0000 http://www.obliviousinvestor.com/?p=4563#comment-1519 Insightful post. I think you make a good point about not being able to truly predict returns. Any investment is the same. It's just not possible to predict what the final returns will be. Which is why I like the idea of have passive income streams, along with dollar cost averaging in index funds and value investments (I like companies with DRIPs) and building a solid cash emergency fund. It sort of helps you cover your bases. And, if you start young enough, chances are you'll build up enough to account for inflation and give you what you need down the road... Insightful post. I think you make a good point about not being able to truly predict returns. Any investment is the same. It’s just not possible to predict what the final returns will be. Which is why I like the idea of have passive income streams, along with dollar cost averaging in index funds and value investments (I like companies with DRIPs) and building a solid cash emergency fund. It sort of helps you cover your bases. And, if you start young enough, chances are you’ll build up enough to account for inflation and give you what you need down the road…

]]> By: B7 http://www.obliviousinvestor.com/what-stock-market-return-should-we-expect/comment-page-1/#comment-1518 B7 Thu, 28 May 2009 14:50:12 +0000 http://www.obliviousinvestor.com/?p=4563#comment-1518 I think predicting the stock market is like predicting the weather. It's not possible to guess accurately. There are far too many factors and unknowns. Planning on something that you have no control over and cannot predict might not be such a good idea... I think it's better to find another way to get rich or invest... I think predicting the stock market is like predicting the weather. It’s not possible to guess accurately. There are far too many factors and unknowns.

Planning on something that you have no control over and cannot predict might not be such a good idea…

I think it’s better to find another way to get rich or invest…

]]> By: Welath Pilgrim http://www.obliviousinvestor.com/what-stock-market-return-should-we-expect/comment-page-1/#comment-1513 Welath Pilgrim Wed, 27 May 2009 14:33:31 +0000 http://www.obliviousinvestor.com/?p=4563#comment-1513 A message never made often enough. Well done. A message never made often enough. Well done.

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