From: Way West of Wall Street
Dear Friend & Subscriber,
I read some interesting statics this weekend that I thought I would share with you.
A lot of people are saying the Stock Market Sucks . Yes, the stock market sucks right now and the year has started off very badly, but take a look at these numbers below.
This proves that buy and hold is only a good strategy depending on when you exit the market.
The numbers below represent the annualized total returns from December 31, 1999 to December 31, 2007 as a percentage:
Nasdaq -4.70
S&P 500 1.66
Cash 3.24
DJI 3.95
10 Year Treasurys 6.45
30 Year Treasurys 8.77
Pretty interesting.
If you had a buy and hold strategy using Index funds for the Nasdaq and S&P 500 for this time frame, you are correct, the stock market sucks .
You would have been better off in cash or a treasury note.
Sincerely,
Michael MeAngelo