7 years of the stock market

Earlier today Cactus posted on the real Dow over the past seven years.

Another comparison is to look at the alternative strategy, investing in cash or 3 month T bill.

If in January, 2001 you had placed your investments in 3 month T bills and reinvested the income in 3 month T bills, at the end of December, 2007 your total returns would have been
almost exactly the same as if you had invested in the S&P 500 with daily dividend reinvestment.
Way to go team Bush.

P.S. In looking at the current stock market and listening to strategist this chart is an important lesson to think about. You will hear from Wall Street analysts that if you do not go back into the market and miss the first leg off the bottom you are missing a great opportunity. Of course they are right. But if you miss that first bounce off the bottom and wait to go back into the market as long as you return while the market is below the cash line you are still better off than if you rode the market down and back up.

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