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Oops. I really should try harder on my headlines. It was not my intent to imply that the stock market has been a lousy investment over the last 12 years. I'm just talking about today.
The S&P 500 is currently down about 6%.
The 3-month treasury bill currently yields a mere 1/2%.
Therefore, at today's 3-month treasury bill rate, it will take roughly 12 years of interest to "safely" recoup the losses for those who are selling stocks right now.
Of course, I'm not factoring in inflation over the next 12 years for those concerned about future purchasing power. Hence my quotes around the "safely" word.
Let's be an optimist though and assume that there won't be any inflation going forward. It makes the math so much easier (to stomach).
Fed Chair Powell: No "signals that we need to be in a hurry to lower rates"
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From Fed Chair Powell: Economic Outlook. Excerpt:
*The recent performance of our economy has been remarkably good, by far the
best of any major economy in...
2 hours ago
2 comments:
I think it's safe to say that Lehman and Washington Mutual are down for a bit longer - eternity!
MAB,
I think it's safe to say that Lehman and Washington Mutual are down for a bit longer - eternity!
Speaking of eternity...
Believe me, Baldric, an eternity in the company of Beelzebub and all his hellish minions will be as nothing compared to five minutes alone with me...and this pencil. - Edward Blackadder
The pencil is mightier than the sword, especially at it applies to offering loans to people who can't pay. Of course, there are no doubt more than a few shareholders all to willing to use a pencil AS a sword these days.
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