Normal
So simple when it is broken into the main components. Earnings, and the multiple on those earnings. Take the constituents from 1910 of whatever your first chart is actually charting (what it is in 1910?) and I bet you the returns won't be nearly as good. At a guess I'd say 90% of the ASX top 20 didn't exist back in 1910. And they'd never be included if there is no rebalancing.Still something I am struggling with... i.e. taking the long term perspective. It's very hard. I can only have a portion on my money on this. I am reasonably comfortable with not getting very rich from investing for the long term, but I am very uncomfortable with having lots of exposure to the market when it appears to breakdown in the short - medium term.
So simple when it is broken into the main components. Earnings, and the multiple on those earnings.
Take the constituents from 1910 of whatever your first chart is actually charting (what it is in 1910?) and I bet you the returns won't be nearly as good. At a guess I'd say 90% of the ASX top 20 didn't exist back in 1910. And they'd never be included if there is no rebalancing.
Still something I am struggling with... i.e. taking the long term perspective. It's very hard. I can only have a portion on my money on this. I am reasonably comfortable with not getting very rich from investing for the long term, but I am very uncomfortable with having lots of exposure to the market when it appears to breakdown in the short - medium term.
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