June 12 2018
Posted by Ben Carlson
A podcast listener asked Michael and I the following:
Wanted to get your thoughts on the concept of stocks for the long run and why the investing world all generally agrees that over long time periods stocks will be up big. Why do stocks generally go up over time and why can we expect them to continue to increase in value over time?
We discuss this question briefly in this week’s episode (which will be available on Wednesday) but I wanted to flesh this one out a little more.
I’m not sure I agree with the assertion that the entire investing world agrees stocks will be up big over long time periods because of the pervasive negativity that has entered the minds of many investors since the financial crisis. But here is the long-term track record of stocks around the globe courtesy of Elroy Dimson, Paul Marsh and Mike Staunton in the Credit Suisse Global Investment Returns Yearbook 2018: