Real Rates of Return

I just received a release of how the stock market has faired over the past 20 years and thought the information was highly interesting.

Morningstar Reports (September 5, 2008)

United States Broad Stock Market

2008 Return so far -13.20%
1-Year return -12.94
3-Year return -1.26%
5-Year return +3.21% (which didn't even beat inflation of 3.36%!)
10-Year return -1.98%
20-Year return +3.28%

So who is making money in the stock market? Don't be sold by the Jim Cramers, CNBC, MSNBC, or anyone trying to sell a book! We may be repeating what the Japanese economy has done for the past 25 years - simply tread water...

On the other hand, the Yale Univeristy Endowment has averaged over 15.8% over the past 20-year period, and has beaten the stock market in every period of return by having 70% of its investment portfolio in alternative investments!

Do your homework! You'll thank me later...