It would be helpful to clarify whether the chart of S&P returns over different horizons shows annualized return or total return. That makes a huge difference with 30 years of inflation.
Great info Rhys. Early on in my investing journey some 20 years ago, reading books with data like this really opened my eyes and helped form a big part of my investing mindset. Lots to take away for the younger viewers here.
Investors have experienced a period in which any suitable fixed income rate of return did not exist for upwards of 12 years ! And then interest rates leaped upwards 5% in less than a year and a half. When I was 17 years old a mortgage was 16% and a personal loan was over 23%. Economic growth is baked into the cake when interest rates are trending down for 40 years. The most important long term data to look at is that of interest rates. Thanks for the excellent channel, .... eh.
Woo-hoo. First to comment!!! This is a "top shelf" video. Very well done. Still doesn't help when my wife looks at her portfolio and asks ME why MY investment choices for "HER" money has lost value last quarter! 😮
Hey Rhys, I would love a video about mutual funds and index funds. I watch a lot of US content, which seems like they use a lot of index funds, but when I go to my financial planner I am only ever offered a bouquet of mutual funds. Does Canada have target index funds like Vanguard has? What do I need to ask for when I go to my next appointment. Thanks!
Good idea! You may be looking for ETFs. There are a gazillion different ETFs that track indexes including Vanguard. Most of our clients actually have this type of portfolio. Cheers!
This is a good video showing the historical returns of the S&P 500 which is around 8%. I wonder what the historical returns are for the bond market? I would be interesting to compare a historical bond market return compared to the volatility of the S&P and see what the different is. I'm not sure if this 8% included the dividends paid out so this could be a huge factor.
Money printing definitely leads to inflated prices (inflation). But it’s real return that matters, which is your return minus inflation. And this is where the stock markets shine over the long run.
The US is addicted to QE since 2008. The US stock market is now a government program. The gains in the time frame are there but are grossly overstated. Gains since 2008 are backed by the FED and what's sitting on the FED's balance sheet. QE has sent asset prices to the moon - not just stocks but also real estate and crypto. You can state gains all you want but it really is backed by the FED's balance sheet.
It would be helpful to clarify whether the chart of S&P returns over different horizons shows annualized return or total return. That makes a huge difference with 30 years of inflation.
You’re right. I should’ve specifically pointed out that it is annualized. Good call.
So much information out there, but I never want to listen to those videos. I always watch yours Rhys as they are fast and informative and fabulous.
Great info Rhys. Early on in my investing journey some 20 years ago, reading books with data like this really opened my eyes and helped form a big part of my investing mindset. Lots to take away for the younger viewers here.
Investors have experienced a period in which any suitable fixed income rate of return did not exist for upwards of 12 years ! And then interest rates leaped upwards 5% in less than a year and a half. When I was 17 years old a mortgage was 16% and a personal loan was over 23%. Economic growth is baked into the cake when interest rates are trending down for 40 years. The most important long term data to look at is that of interest rates. Thanks for the excellent channel, .... eh.
Love your videos. Keep it up. I wish I could have you as my personal finance guy haha :)
Thank you!!
Woo-hoo. First to comment!!!
This is a "top shelf" video. Very well done. Still doesn't help when my wife looks at her portfolio and asks ME why MY investment choices for "HER" money has lost value last quarter! 😮
Hey Rhys, I would love a video about mutual funds and index funds. I watch a lot of US content, which seems like they use a lot of index funds, but when I go to my financial planner I am only ever offered a bouquet of mutual funds. Does Canada have target index funds like Vanguard has? What do I need to ask for when I go to my next appointment. Thanks!
Good idea! You may be looking for ETFs. There are a gazillion different ETFs that track indexes including Vanguard. Most of our clients actually have this type of portfolio.
Cheers!
This is a good video showing the historical returns of the S&P 500 which is around 8%. I wonder what the historical returns are for the bond market? I would be interesting to compare a historical bond market return compared to the volatility of the S&P and see what the different is. I'm not sure if this 8% included the dividends paid out so this could be a huge factor.
This chart will answer your questions: www.td.com/ca/en/asset-management/documents/investor/PDF/news-insight/2022-Morningstar-Andex-Chart.pdf
@@wellbuiltwealth Thanks for this chart - I've seen it somewhere before but wasn't able to find it!
The stock market speculation is a by-product of money printing. As long as money is being added exponentially to the system, the market will rise.
Money printing definitely leads to inflated prices (inflation). But it’s real return that matters, which is your return minus inflation. And this is where the stock markets shine over the long run.
Gooder?!
Indeed
The US is addicted to QE since 2008. The US stock market is now a government program. The gains in the time frame are there but are grossly overstated. Gains since 2008 are backed by the FED and what's sitting on the FED's balance sheet. QE has sent asset prices to the moon - not just stocks but also real estate and crypto. You can state gains all you want but it really is backed by the FED's balance sheet.