“I can sell you 20 million dollar painting but I can’t tell you why a piece of code is money. That’s an interesting paradox.”
- The former CEO of Sotheby's, Tim Smith.
Stop whatever you’re doing right now and spend two minutes of your life listening to what he has to say about #Bitcoin and why it’s going to reach $10 million per coin. https://video.nostr.build/f62e33c57cf019e047bddc6ce10ba2af583ef97cfac4c6fab2a78955727bbeef.mp4
Yeah that was also for me a absolute startling insight. S&P keeps you only even, regarding your purchasing power. Only if you invested in the Mag7 tech stocks or at least in an Nasdaq ETF where you able to outgrow your purchasing power against inflation.
Heard that btw two years ago in the nostr:npub15dqlghlewk84wz3pkqqvzl2w2w36f97g89ljds8x6c094nlu02vqjllm5m interview at the Tucker Carlson show.
I don't agree that this is entirely true. I don't think the top 500 businesses in the world produce zero real return. certainly it isn't 100% real either but don't agree it is 0%
True, that is an average. If you invested in certain companies like Apple, Microsoft, Amazon, NVIDiA or Berkshire they generated real returns but many others didn’t by far.
Over the last 5 years the M2 money supply has grown at a rate of 6.6% on average, the S&P 500 has grown at 13.4% on average.
Clearly inflation is a large portion of the return, but it isn't all of it. The stock market produces real return.
** if you include re-investing dividends, you'd be at 15%-16% return on the S&P over the last 5 years.
If you look over a longer timeframe than just 5 years it gets closer. 😉
But I agree that good companies produce real returns but the index average not really over decades.
arguably it would be more favorable to your case just looking at the past 5 years as the money supply has greatly increased.
since 1960 M2 is 6.88%. nominal stocks are around 10-11%. so a real return has been made to the stock investor
