Tumbling Dice
“How’s the stock market doing today?”
Be honest. This question runs through some of your minds every day. And then you take a quick peek on the internet or your TV for the answer.
The fact is that about half the time you check it is going to be up, and about half the time it is going to be down.
Since 1928, for every 100 days, the S&P 500 index has been…
UP 52 days
DOWN 48 days
……..but even though just barely more than 50% of trading days have been up days…..
that has translated into a gain of +18,607% for the S&P 500 index! (source: Bespoke, Inc.)
Casinos are wildly profitable using a similar format. They only have to win slightly more than 50% of all bets made to make a tremendous amount of money.
The beautiful thing about investing in the stock market is that you get to be the casino, and not the easy mark walking in the front door.
The views expressed herein are those of the author and do not necessarily reflect the views of Raymond James & Associates or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
The Standard & Poor's 500 Index is a market capitalization weighted index of the 500 largest U.S. publicly traded companies by market value. It is unmanaged and cannot be invested into directly.
The investments listed may not be suitable for all investors. Raymond James & Associates recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor's individual circumstances and objectives.
