Where to find the article that there are no losses in the stock market for any 10 yr

babymush

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Hi

There was some articles on that if a Buy and Hold strategy were to be employed. There are no losses in the stock market in any 10 years period.
 
babymush said:
Hi

There was some articles on that if a Buy and Hold strategy were to be employed. There are no losses in the stock market in any 10 years period.

A lot of companies have gone broke. Which index were you thinking of? FTSE100 is based on capitalisation so the bottom ones are likely to be replaced by others- not sure how often, every three months? That means that this index is only interested in winners, the losers get chucked out.

Split
 
Splitlink said:
A lot of companies have gone broke. Which index were you thinking of? FTSE100 is based on capitalisation so the bottom ones are likely to be replaced by others- not sure how often, every three months? That means that this index is only interested in winners, the losers get chucked out.

Split
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Split,
What you say about the footsie 100 index is TRUE! Its for that reason i do DOTM short[written] PUTS. :cool: and also cause its NOT on American style! :cool:

Bull
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It is not on an individual company. Speaking about an index as an overall guide.

Has anyone seen such an article?
 
babymush said:
It is not on an individual company. Speaking about an index as an overall guide.

Has anyone seen such an article?

Right. I misunderstood you before. No, I haven't seen the article, sorry.

Split
 
babymush said:
No problem. If anyone seen something similar, please let me know :)
You don't need an article, you need the right goggles.

Wearing the right goggles and not the wrong ones you will immediately be able to observe any index and arrive at the conclusion of the obvious.

This is that all indexes in general terms have a propensity to go up over time and not down.

The reason for this is simple.

If indexes were made to go down over time and not up, no one in his right mind could be persuaded to invest in stocks and shares.

The causes attributed to this characteristic of active, efficient markets vary in quality from the arcane to the sublime, and this website is not exactly the venue to give the topic the proper depth of explanation it deserves.

It suffices to say that indexes can be kept healthy by weeding out constituents that are failing and replacing these with constituents that are succeeding.

There is no mystery, just common sense, and no articles or even artichokes, Babymush.
 
I don't know about an article but is this any use? It's the Dow's 10-year performance at the end of each year's first trading day, using Yahoo's data.
 

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