The S&P500 Never Reaches New Highs

Investing is much more than trying to beat the market. Stock indexes are managed. Only the surviving companies factor in. Losing companies get swapped out. The index is simply a measure of historical inflation.

-I2Guru

Disclaimer: Before doing anything this article may inspire, research further or consult tax and finance professionals.

Investing is about targeting a reasonable expectation of returns - buying low and selling high or holding a stable company that has great free cashflow and ever-increasing dividends. All the rest you hear and read is just noise.

The biggest marketing tools that Big Finance has are the S&P 500 and the DOW indexes. They dominate the media. However, in reality, they simply just trend with inflation. If you look at the companies in the indexes today versus just 10 years ago or 100 years ago, you will find it is simply a measure of the market investment into the current survivors of the time. In no way does it reflect the value one would have if they bought and held companies in them. Sears, Blockbuster, Montgomery Ward - the index in no way reflects the investment losses of those companies that went bust.

So, don't worry about "beating the market". Set your targets for steady income and enjoy the fruits of your life-long savings. Visit the I2Guro 200 for a list of some of the best income generating assets available today.

Back to Blogs