How to Listen to Today’s Episode
Topics Discussed: Why Invest In the Stock Market?
In this episode we talk about why we invest in the stock market even though there is the risk of losing money. Specifically we address:
- What does the history of the stock market have to teach us about investing and down markets?
- How has the stock market reacted to crises in the past, and what can this teach us about investing for the future?
- What are some simple, concrete steps an investor can take today?
Episode Notes: Why Invest In the Stock Market?
If you were to invest $100,000 on 12/31/2002 in the bond market (as represented by the Bloomberg Barclays Aggregate Bond Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be just over $200,000.
If you were to invest that $100,000 in the stock market (as represented by the Russell 3000 Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be over $400,000.
If you were to invest $100,000 on 12/31/1996 in the bond market (as represented by the Bloomberg Barclays Aggregate Bond Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be just over $300,000.
If you were to invest that $100,000 in the stock market (as represented by the Russell 3000 Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be over $500,000.
If you were to invest $100,000 on 12/29/1978 in the bond market (as represented by the Bloomberg Barclays Aggregate Bond Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be just over $1,500,000.
If you were to invest that $100,000 in the stock market (as represented by the Russell 3000 Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be over $7,500,000.
Source: https://www.bloomberg.com/quote/LBUSTRUU:IND; https://www.ftserussell.com/products/indices/russell-us
