Step 9: History
The Resilience Of Capitalism Capitalism has proven to be resilient. Figure 9-3 shows the growth of a dollar in various indexes over the course of 86 years, marked with 15 major news events listed in Figure 9-4. While the major events had large short-term impacts on market prices, they proved to be largely inconsequential in the longterm as the market marched ahead. Despite several setbacks, capitalism has not only persevered, but thrived. This longterm history of quality data provides the most useful tool for investors to construct risk appropriate portfolios. Figure 9-3
This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...