Thursday, March 14, 2019

20 crazy investing facts I Labour force participation rate

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Twenty crazy investing facts (Link)

- Since 1916, the Dow has made new all-time highs less than 5% of all days, but over that time it’s up 25,568%. 95% of the time you’re underwater. The less you look the better off you’ll be.

- The Dow has compounded at less than 3 basis points a day since 1970. Since then its up more than 3,000%. Compounding really is magic.

- The Dow has only been positive 52% of all days. The average daily return is 0.73% when it’s up and -0.76% when it’s down.

- The Dow has spent more time 40% or more below the highs than within 2% of the highs (20.6% of days vs. 18.4% of days) No pain no gain.

- In 1949 the stock market was trading at 6.8x earnings and had a 7.5% dividend yield. 50 years later it reached a high of 30x earnings and carried just a 1% dividend yield.You can calculate everything yet still not know how investors are going to feel

US prime age labour force has room to grow
Ex-cons are now joining the US labour force
US prison populations are declining and a thriving job market is giving many ex-prisoners a second chance in the labour market.