[quote=moneymaker]Pleasantly surprised to see that I have averaged 10.7% over the last 5 years. Not bad! Especially considering what interest rates have been like over the last 5 years.[/quote]
Think a better “investment barometer” would be a 10 year period, because it capture how an investor positioned their portfolio prior to the bubble as well as how they rode out the “crash”
the basic math equation is
p = p(0) e^(it)
where:
p = portfolio value “present”
p(0) = portfolio value “initial”
e = 2.718281828459
i = interest rate (solve for this value)
t = time “period”
