Quote:
Originally Posted by DAVES
Interesting BUT.......... When to buy and when to sell THAT IS THE QUESTION.
The S&P year to date has fallen nine percent. The Russell 2000 has fallen 14% year to date. The CPI consumer price index has hit 8%. Assuming you are AVERAGE and lost 9% in the market. We ALL are paying 8% more for goods some of which we can decide not to buy at this price others like food and gasoline will get painful for those who cannot afford to pay more, NET loss not sure how the math works is it 9 plus 14 average 9+14=23 divided by 2= 11.5%. No it is not as the same stocks are in both indexes. So using the S&P as average normal and CPI as average effect on all it is like anything else FUZZY MATH 9+8%=9.72% lost. In REAL MONEY almost 10% has DISAPPEARD.
|
However only 55%of Americans are invested in the stock market. Just a hunch retirees are invested much higher in bonds than equities thus the "AVERAGE" of 9% bis not accurate across the entire population. The fuzzy math needs to get fuzzier.