Is Poor the New Standard?
January 5, 2010
Historically the stock market demonstrates investment gains in the long-term. Unfortunately USA Today reports the 2000s are being called the “Lost Decade.” Not because of the popular ABC series, but rather the loss in investment income. This is the first time that the Standard & Poor’s 500-stock index will end a decade with a negative return. In concrete terms, $1 invested in the S&P 500 on December 31, 1999 would have an approximate value of .90 at the close of 2009. Other investments did fare much better these past ten years: $1 invested in bonds would have almost doubled and $1 invested in gold would be close to quadrupling.
Over time investments usually gain, not cost
But that’s not the case for the decade we just crossed
For every dollar burned
Only ninety cents returned
No wonder they’re calling it the Decade of Lost
Tags: $1, investment loss, Lost Decade, ninety cents, S&P 500-stock index
Posted on: January 5, 2010
Filed under: Other
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