The best way to build wealth is to hold assets that compound wealth over time. Cash does not compound wealth over time. I too get drawn into thinking about rich valuations and near term risks and sometimes it doesn't feel great to be 100% invested in stocks. But the truth is that over the next 40-50 yrs, stocks will all certainly make thousands of new all time highs. If stocks return 9% a year for the next 40 yrs with a 2% dividend yield, then an investment in the sp500 today at 3270 should turn into 50,000 by 2060 and 100,000 with dividends reinvested.
Stonks go up.
No comments:
Post a Comment