If you had $100 to invest in the DOW in 1928 you would have $3128.52 today- what a deal right? Wrong, let me tell you why.
I’ve been to several financial offices where they proudly display the graph of the DOW since 1928. The desired effect being that we are to think that the market always goes up, you just have to be patient. I, like many people, didn’t appreciate just how patient one has to be though until I examined the returns in more detail.
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Before starting I should say that I am not a fan of market timing, I think trying to plot an irrational event rationally is next to impossible. However, having said that, if you have the choice between two options both with equal merit why not pick the option with a track record of previous success? In my case the question is, should I get my tax forms prepared early and wait for the final forms to arrive next month and then send in, or wait until the final forms arrive before I start putting everything together.
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