Take a Look around and start smelling the ROSES America!
Why is the promise of 10% over 10 years the security blanket we, as Americans, cling to? Could it be the built in protection from blame when the economy sinks further into the Abyss of Depression-esque economic times?
Or is the truth really the absolute ignorance of our own time is going to kill US?
The NYSE promises a 10% return over the course of 10 years, and historically this has been mostly true (as far as my limited knowledge of the NYSE history. How does that happen? Is there a formula to compute the growth or fall of the Dow Jones each day / week / month? Absolutely not! There is not a soul in the world today who can definitively give the factors of such critical movement. I remember the simplest of economic principles had something to do with 'Supply' as well as 'Demand'. It really does not take a rocket scientist to know that the less of a product there is, the more it becomes worth and vice-versa. As a nation we only seem to understand the concept when the oil (gas) prices jump through the roof, but not when it comes to our own investment dollar. I know through my own corporation, Real Estate Services of Central Illinois, Inc., I can issue more stock at any point, and I am sure I can eliminate some as well. What this tells me is that at any point in time a corporation may create 10,000 more shares of its stock and instantly this would seem to reduce the value of the individual share price. So it makes me think as to why it is the promise of 10% RETURN OVER 10 YEARS is a motto in which will steer people to devote their hard earned ivestment dollar into a rock solid phrase with not a definitive shred of knowledge as to why or when this will take place. I can look at my investment clients today and definitively say, I can get you into a piece of land that WILL RETURN A MINIMUM OF 25% within 12 months... I can also quote the factors to minutia which will make this a reality, and as every intelligent investor does with strategy, I will provide a very equitable back-up or alternative plan to implement should the unexpected arise.
Can You give me reasons why we would continue to invest in the unkown, and forget the teachings of basic Economic theory?
Comments(0)