Major Indices Returns since September 11th, 2001
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As one of the famous Buffettism’s goes ” Buy when everyone is fearful, sell when everyone is greedy”, I decided to see if this held true in the face of the fear of the tragic September 11th attacks. Looking back to the 8 years and everything the world markets have endured, none of the major indices have returned greater than 4% average annual return. The best return come in the form of investing in Gold bullion which has a total 8 year return of 255% and an CAGR of 31.9%.
Even though every index that I included to track provided a positive return, the returns seem to be nominal and not worth the risk of the underlying equities and economies. See the below table for the results:
This analysis helps me understand that I will not execute the buy and hold investment strategy for the major indices.
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2 Comments on this post
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Sensual photography said:
Yesterday I watched a segment on Today a financial advisor said 6 out of 10 employeeors are no longer giving bonuses therefore we have to make our own. If we take even the smallest amount (like $79) and put it in an account that earns 8% interest you will have over $1000 in a year. WHO PAYS 8% INTEREST? My money market fund only pays 1.5% under $10,000.
October 6th, 2009 at 6:51 pm -
Rose carp fishing said:
Hi,
it is really nice post with have good article related this topic.Thanks for this nice sharing….October 12th, 2009 at 1:37 am
