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.

How Investing Can Make You Rich

Wish you could see the power of money? Wonder how the rich make their money work harder than they do?

Ever felt overwhelmed by some decision, and just picked an option so you didn't have to think about it anymore?  It can be easy to get lost in numbers. And when your head is swimming, you won't make the best decisions! 

It helps to see this kind of junk displayed in a graph. As hard as it can be to imagine how compound interest works, graphs like this can make it easy to understand!