It’s when you buy…

[edna_mode]

@nsr: the link I gave for the 3am comment wasn’t right. This is the correct one, and may address some of your questions:

http://www.crestmontresearch.com/content/Matrix%20Options.htm

That gives charts in nominal vs. real dollars; taxable vs. tax-exempt; and P/E ratios. There are numbers not just colours in each square. And make sure to check out the “Assumptions Graph”.

Should have linked to this in the OP.

I believe they are re-investing dividends? But can’t find that in the assumptions.

EDIT: Just looked closely at the legend on the graphs, and the third box down on the taxable real returns one says clearly that dividends are reinvested, in addition to how inflation, taxes, trading costs etc. are treated.

[no_such_reality]

This is the same basic results that were made available back in 1998 when O’Shaugnessy wrote “What Works on Wall Street”. The basic conclusion was the nominal returns are just sub 11% over the long haul.

Inflation eats 4% of that. Taxes take another 2% and transaction costs eat 1% for trading.

Ironically, that’s the best performing short of building your own successful business.

It also still shows a 6% real return in tax protected accounts. Which given they’re using integers isn’t bad.

Great links BTW. I suspect you could build a return line for a dollar averaging buy-in.

When looking at this kind of historical data you need to keep in mind that the “Crash” and the Great Depression literally wiped out everything that went before the end of WW2.

[no_such_reality]

This is the same basic results that were made available back in 1998 when O’Shaugnessy wrote “What Works on Wall Street”. The basic conclusion was the nominal returns are just sub 11% over the long haul.

Inflation eats 4% of that. Taxes take another 2% and transaction costs eat 1% for trading.

Ironically, that’s the best performing short of building your own successful business.

It also still shows a 6% real return in tax protected accounts. Which given they’re using integers isn’t bad.

Great links BTW. I suspect you could build a return line for a dollar averaging buy-in.

When looking at this kind of historical data you need to keep in mind that the “Crash” and the Great Depression literally wiped out everything that went before the end of WW2.

[no_such_reality]

This is the same basic results that were made available back in 1998 when O’Shaugnessy wrote “What Works on Wall Street”. The basic conclusion was the nominal returns are just sub 11% over the long haul.

Inflation eats 4% of that. Taxes take another 2% and transaction costs eat 1% for trading.

Ironically, that’s the best performing short of building your own successful business.

It also still shows a 6% real return in tax protected accounts. Which given they’re using integers isn’t bad.

Great links BTW. I suspect you could build a return line for a dollar averaging buy-in.

When looking at this kind of historical data you need to keep in mind that the “Crash” and the Great Depression literally wiped out everything that went before the end of WW2.

[no_such_reality]

This is the same basic results that were made available back in 1998 when O’Shaugnessy wrote “What Works on Wall Street”. The basic conclusion was the nominal returns are just sub 11% over the long haul.

Inflation eats 4% of that. Taxes take another 2% and transaction costs eat 1% for trading.

Ironically, that’s the best performing short of building your own successful business.

It also still shows a 6% real return in tax protected accounts. Which given they’re using integers isn’t bad.

Great links BTW. I suspect you could build a return line for a dollar averaging buy-in.

When looking at this kind of historical data you need to keep in mind that the “Crash” and the Great Depression literally wiped out everything that went before the end of WW2.

[no_such_reality]

This is the same basic results that were made available back in 1998 when O’Shaugnessy wrote “What Works on Wall Street”. The basic conclusion was the nominal returns are just sub 11% over the long haul.

Inflation eats 4% of that. Taxes take another 2% and transaction costs eat 1% for trading.

Ironically, that’s the best performing short of building your own successful business.

It also still shows a 6% real return in tax protected accounts. Which given they’re using integers isn’t bad.

Great links BTW. I suspect you could build a return line for a dollar averaging buy-in.

When looking at this kind of historical data you need to keep in mind that the “Crash” and the Great Depression literally wiped out everything that went before the end of WW2.

[Author]

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