That is why you need to understand the currency.

what value does paper USD have? can you eat it? live in it? no, right?

Currency is for exchange of goods, not eat it, not live on it unless you exchange for some thing that human needs.

Currency has to be stable or you have to speculate on stocks and bonds hoping it beats the devaluation of currency. Which is exactly what we have today.

If currency has stable value, then you know the return on broad market of stocks is not going to be crazy since brenttonwood break up.

 

所有跟帖： 

• you can use currency to buy food, shelter, -longterminvestor- ♂ (868 bytes) () 03/07/2011 postreply 16:13:23

• mmm. :) -天下无马- ♂ (277 bytes) () 03/07/2011 postreply 16:21:02

• now, you are talking about real long term return -longterminvestor- ♂ (72 bytes) () 03/07/2011 postreply 16:27:30

• Not very long, 50 year since Brettonwood break. -天下无马- ♂ (1508 bytes) () 03/07/2011 postreply 16:40:23

• that is only index, if you consider compounded -longterminvestor- ♂ (322 bytes) () 03/07/2011 postreply 17:31:23

• :) Do you think a single company represents stock market? -天下无马- ♂ (546 bytes) () 03/07/2011 postreply 19:27:23