> > 10% annual return on the stock market is a fantasy. > > Agreed. What I said is that the historical average is 10%. Your annual return will > rise and fall with the market, but over the long term, with a properly balanced > portfolio, your average return will tend toward 10%.
THAT is the fantasy. The actual return "over the long term" is between six and seven percent.
If you have a few really bad years in your 30 year timeframe, you can get hosed.
Personally, I think we've got another big crash coming in the stock market. The stock price multiples we're seeing don't make any sense given the job market and the miserable housing market.
Home prices in many markets have at least another 40% to fall before they come back anywhere near sensible trend lines. This loss in value will crush the banks, especially ones that are asshole-deep in mortgages like Bank of America.
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Re: So if you had of listened to your Loony Bin Financial Advisor
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