AI
Monday, March 09, 2009 4:10:05 PM
From the previous chart I posted
You get the impression that stock prices progressively rise over time.
Looking back further however reveals that hasn't always been the case
What appears to be consistent across time however is that generally stock capital gains average out as barely beating inflation and its the dividend income benefit that provides the 'risk premium'. Buying as much of that premium for as little as possible (e.g. when yields are relatively high) is likely a good thing.
Clive.
You get the impression that stock prices progressively rise over time.
Looking back further however reveals that hasn't always been the case
What appears to be consistent across time however is that generally stock capital gains average out as barely beating inflation and its the dividend income benefit that provides the 'risk premium'. Buying as much of that premium for as little as possible (e.g. when yields are relatively high) is likely a good thing.
Clive.
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