Should you trust the stock market? Pt I

Should you trust the stock market? Part I

Check out Part II here

Historically, the returns have been good on the Dow Jones or the S&P 500. But, as every financial advisor cautions, past performance is no guarantee of future results.

Dow Jones (all-time, also note the log scale—this graph has a much steeper incline than it appears at first glance; see below):

from https://en.wikipedia.org/wiki/Dow_Jones_Industrial_Average

Dow Jones (all-time, labeled with some historical highlights):

from http://www.independent-stock-investing.com/images/DowChart2.png

S&P 500 (since 1950, including adjustment for inflation):

from https://en.wikipedia.org/wiki/S%26P_500_Index

Or, for those who would prefer an annualized chart of S&P 500 returns, here you go (all-time--note that the S&P 500 was called the "Composite Index" before 1957):

from http://cbsnews1.cbsistatic.com/hub/i/2016/01/05/8bc2c493-ba40-4703-9979-c19534cbae20/64b19a4e258194bd5d72f1b77e371301/s-p-500-return-through-2015.gif

Notably, John Bogle (the founder of The Vanguard Group, an investing company) is not optimistic in the short-term: http://www.marketwatch.com/story/john-bogle-says-you-wont-make-much-money-from-stocks-2015-11-05

So, should you be optimistic? Is it wise to invest in the stock market? Is the market really trustworthy?

You don't need my advice. Take a look at the graphs above and decide for yourself.