Len
No I am not criticizing the math
Again
"Even more telling is the fact that if you took your money out of the DOW on October 10, 1929 and put it in something that would have paid out a relatively conservative 3% return, it would not have been until December 12, 1986 (!!!) that you would have fallen behind the DOW. That's 57 years folks! And, because of the 87 crash, the DOW still trailed the 3% investment as late as 8-8-88 (almost 59 years)!!!"
This can't be true because in putting money in the dow you have to assume those 5% dividend yields would be reinvested. You are assuming your gains on that theoretical 3% get reinvested and part of your gains on the dow (the dividends) get spent.
I think this statement is very misleading as to its implications. You certainly don't believe that it would have taken 57 years for a buy and reinvest dividend policy in the dow to catch up with a 3% bank yield do you? I would say its more like 30 off the top of my head and that would be for the worst timing in the markets history at least to date.
When posting on VMC boards all postings should have a symbol in the header and if foreign please post both US and Foreign symbols.
