Over 30 years with the ups and downs it averages 10-12% a year. So while this year will probably be bad, next year or the year after will probably be exceptionally good.
That’s not how the markets necessarily work. A bad year this year doesn’t necessarily mean an extra special year next year.
I guess the problem I’m pointing out is that it’s unlikely to fully regain the lost value fast enough to make up for the compound value that would have existed.
For people just starting out, it puts a significant cramp on their ability to gain capital. There may not be any better options, but it hurts people and in ways that won’t necessarily be made whole.
Over 30 years with the ups and downs it averages 10-12% a year. So while this year will probably be bad, next year or the year after will probably be exceptionally good.
That’s the problem with averages.
That’s not how the markets necessarily work. A bad year this year doesn’t necessarily mean an extra special year next year.
I guess the problem I’m pointing out is that it’s unlikely to fully regain the lost value fast enough to make up for the compound value that would have existed.
For people just starting out, it puts a significant cramp on their ability to gain capital. There may not be any better options, but it hurts people and in ways that won’t necessarily be made whole.