The long-term buy-and-hold chart assumes an investor who does not exist

1. 1In Part 1 of his five-part series, Lance Roberts pointed out the hidden assumption error behind the long-term buy-and-hold chart
2. 2Since 1871, the U.S. stock market has been below its high roughly 3 out of every 4 months, and buying at the 2000 peak took about 13 years to break even in real terms
3. 3Noting that the current CAPE of around 40 saw past similar zones deliver negative average real returns over the following 10 years, he stressed the distinction between investing and speculating

Source Real Investment Advice +1 · View original ↗

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