Search
Join the Investing Revolution

Become a Kapitall Beta Tester
Click Here to Sign Up (it's free)

Kapitall RSS Feeds
Social Media
« Pope proposes new financial order guided by ethics | Main | List of Bond Index Funds »
Monday
Jul062009

Stock Market Gains Over Time

A recent Barclays Capital survey of those with an excess of $820k in investable capital found that most are still concerned about the risk offered by the stock market. Talk of risk and volatility has even more “ordinary” folks (those whose investment portfolios are mostly in the form of retirement accounts) scared to brave the “risks” of the stock market. This idea of the stock market as “risky” is a valid concern for the short term – and even for the long term if you want spectacular returns. However, it really doesn’t address the basic fact that, over time, the stock market pretty much always gains.

Taking a Long-Term Perspective: Short-term, the stock market is volatile. It is difficult to predict what the market will do collectively, much less get a solid read on individual stocks. Investing in individual stocks in the near term is asking for heartburn. Especially in the kind of market we’ve been seeing for the last eight months or so. But that doesn’t mean you should write off stocks altogether. Stock market down cycles represent natural occurrences in overall economic cycles. And every so often we have a rather dramatic crash (or near-crash). But, in the end, the stock market has always historically overcome crashes to become profitable.

Volatility, Time and Returns: When thinking long term, realize that it isn’t good enough to consider 10 years as sufficient when discussing the stock market. To see predictable gains over the long haul, you have to be willing to extend your time frame out to 25 years. And in any given 25-year period since the dawn of stock trading, the stock market has never come up negative. Of course, the down side is this: As volatility over time goes down, so, too, do returns. This handy graphic from The Oblivious Investor illustrates the best and worst stock market returns, after inflation, over periods of various lengths:


Stocks Gain Over Time: As you can see, it is possible to enjoy amazing gains in the short term. However, the potential for large losses is also present. Long term, though, the story changes. The chance of loss is always present, but, historically speaking, the stock market does not lose in the long run. While the success of individual stocks may be another story, the bottom line is that the stock market as a whole always comes out ahead if you give it enough time.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (30)

Very nice Informative article!

October 27, 2009 | Unregistered Commenterstock market

Very nice & useful post.Thx for sharing the information.
http://www.pegasyssoft.com/services-solutions/virtual-assistant-services.html

November 3, 2009 | Unregistered CommenterVirtual assistant services

wow this Kapitall Backstage - Inside Kapitall: Blog - Stock Market Gains Over Time is awsome.
Checkout this one also www.source2update.com

January 19, 2010 | Unregistered CommenterKAMLESH PAL

I really like this blog post, it has some great info. Thank you and keep up good work.

trading for a living

March 17, 2010 | Unregistered Commentertrading for a living

This typically involves the foreign exchange market, despite the fact that trading can be practiced in about any stock market place. Determined by trading knowledge and news, a short-term investment is going to be done by a trader. A trader is also almost always educated about the stock market basics and possesses a large amount of money they are prepared to invest.

September 27, 2010 | Unregistered CommenterStock Trading

I really appreciate your post and you explain each and every point very well.Thanks for

sharing this information.And I’ll love to read your next post too.
Regards
Stock Tips

May 5, 2011 | Unregistered Commenterstock tips

mbt kaya MBT Amali Shoes nike shox mbt sport MBT Wingu Shoes mbt tariki mens shoes mbt changa shoes MBT Lami mbt chapa 4ab1843f187 mbt shoes uk mbt shuguli shoes mbt fanaka MBT Kimondo Shoes mbt chapa gtx coffee MBT Kisumu MBT Sini Shoes mbt chapa shoes MBT Ema Shoes nike shox MBT Lami Shoes MBT Staka Shoes MBT Imara Shoes mbt shoes uk

May 8, 2011 | Unregistered Commenternike shox

I really appreciate your post and you explain each and every point very well.Thanks for

sharing this information.And I’ll love to read your next post too.
Regards
share tips

May 17, 2011 | Unregistered Commentershare tips

La longtemps air max gratté pelota air max shop, fabricada por Nike,
tiene air max france un predominio de los air max noir colores
blanco y air max enfant celeste y sus nouvelle air max motivos

May 29, 2011 | Unregistered Commenterair max

I absolutely adore reading your blog posts, the variety of writing is smashing.This blog as usual was educational, I have had to bookmark your site and subscribe to your feed in ifeed. Your theme looks lovely.Thanks for sharing.
Regards
Share Tips

June 13, 2011 | Unregistered Commentershare tips

Tudor 2011, the new tables, highlighting the brand re-interpretation of the classic style of the brilliant achievements. The new shape of fashion watches and precision of its function, aesthetic design and achieve the perfect balance between technical performance. As a representative of the classic watch, Tudor watches set of Patek Philippe watches replicaPatek Philippe attractive design, superior functionality and reliability in one. This year, the brand re-create classic watches Tudor watches Heritage Advisor, once again to the unique value and more than six decades long tradition of tribute.1957 classic alarm watch as a modern interpretation of the Advisor in 2011 will be a unique style and superior technology to the melting pot, but the perfect embodiment of Tudor watches the spirit of the classic tradition. The movement of the Tudor watches specially equipped research and development of IWC watches replicaIWC mechanical alarm features exclusive components that make a clear sound.The alarm function button located at 8 o’clock; on / off display at 9 o’clock; power reserve display at 3 o’clock in the small cap; and calendar at 6 o’clock in the small cap is. At 2 o’clock crown engraved on the list “ADVISOR” words to adjust the alarm time. In addition, at 4 o’clock crown is Panerai watches replicaPaneraicarefully engraved with the original models the surface of the Tudor Rose symbol table, as on the chain, set the time and adjust the calendar purposes.Watch as the three-match classic matte stainless steel chain strap, or with a new safety buckle crocodile pattern leather strap.Advisor refined and elegant new watch, this is to weave with a black strap to choose from, and through its modern interpretation of classic design innovation Tudor watches. Tudor watches will weave strap design for the watch, not only highlight the essence of Breguet watches replicaBreguet the traditional process, so that the wearer apart to show personal style, while ensuring wearer comfort.

June 15, 2011 | Unregistered Commenterwatch replica

Very nice post sir. i just love it. thanks for sharing this with us.
for two days free trail pack please contact us on 0731-4295950.

June 24, 2011 | Unregistered Commentermcx tips

very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand. thank you for sharing this.

Regard

Share Market

July 1, 2011 | Unregistered CommenterShare Market

oh! what a great writing style..i really appreciate your blog..well done

July 6, 2011 | Unregistered CommenterStock News

New Air Max 2011 is the most popular of running shoes. The Nike Air Max 2010 shoes design, by high performance style. Nike Air Max Zenyth is a kind of wear-resisting, deft, comfortable and fashion Mens Nike Air Max LTD shoes.
Nike Air Max Skyline is special for sports and of the design.This is a high quality of Nike Air Max BW shoes and wear comfortable Air Max 90 shoes, easy. If you are a sports, that we suggest you buy Cheap Air Max 2011|Women's Nike Air Max 4-27|Nike Air Max TN shoes, you will not regret it.
Every woman longs to have set their own victoria bikini,Put on fashionable and beautiful victorias Secret bikini| Sinful Bikini playing on the seashore is every woman's dream,But, there are other words of good, the most beautiful may not be the most suitable, the most suitable is the most beautiful。Wear on the, the world is you. This summer, you wear Ed Hardy Bikini ?
Life has a lot of fun and beer and skittles is indispensable to life。Many people in the holiday with his family to climb up the mountain,Mountain climbing can exercise, it is a kind of fun, exciting and dangerous things.Mountain climbing, our security to our feet, a pair of good wear comfortable Vibram FiveFingers Sprint|Vibram FiveFingers Bikila will bring us a good luck. Have good vibram five fingers kso|Vibram FiveFingers shoes|vibram five fingers shoes sale|Vibram FiveFingers Womenwith happiness, friends, the happy home with you.
Want to buy a sexy Chanel Bikinis|Sinful Bikinis|ED Hardy Bikinis|Hollister Bikinis that can win you all the attention this summer? Get into this for the latest collection of sexy Louis Vuitton Bikinis|Gucci Bikini|juicy Bikinis swim wear swim wear and oakley sunglass sale.

July 22, 2011 | Unregistered Commenternike air max 2010

very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand

thank you for sharing this.

Regard

Stock Market

July 26, 2011 | Unregistered Commenterstock market

very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand

thank you for sharing this.
Regard
Commodity Market

July 27, 2011 | Unregistered CommenterCommodity Market

I positively venerate celebration of a mass your blog posts, a accumulation of essay is smashing.This blog as common was educational, we have had to bookmark your site as well as allow to your feed in ifeed. Your thesis looks lovely.Thanks for sharing.
Regards
share tips

July 27, 2011 | Unregistered Commentershare tips

Nike Air Jordan 1 is the most retroed sneaker ever in the world, and it has a special link with Michael Jordan's career and personality.
Authentic Louis VuittonIn 1984, a lean shooting lookout from the Dean Smith-led UNC Tar Heels was special third general by the Jordans for sale Chicago Bulls in the NBA Draft. The daring red and jet black was in unity with his surly Air Jordans 1 Retro
bearing and mild arrogance, but it was a beguiling, boyish smirk that required the league's collective protect down,
cheapest/cheap louis vuitton handbags departure it vulnerable to damage from any vantage intention. It was too recent by the time the league figured out who Michael Jordan genuinely was, and it rewarded greatly; six
Air Jordans 18 Retro
NBA Championships,Authentic LV Hats ten stretch scoring titles in stuffed seasons, five MVP trophies,louis vuitton jeans mens and shelves satiated of other trophies were conceded to one man who bent an unreasonable ordinary for NBA players both during his time and for the existence to come.With him throughout the whole journey was Nike; after an assembly Authentic Air Jordan
with organizer Phil Knight, Jordan united in and the sports-apparel brand designed a signature shoe that twisted league-broad disapproval from both Jordan's on-patio peers and the NBA brass up top.louis vuitton scarf for men ""Wear it in a brave, and you'll pay"", said the league, and pay they did. Five-thousand a fixture. ""Who do you Jordans 19 Retro
think you are? You're not getting the ball"" said his All-Star teammates. Michael answered back by live in every, All-Star Game

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>