Yep re the points on the ridiculous stock market indice comparison posts continually thrown up.
Don't recall even seeing any countering arguments or responses from the poster when they've been challenged before with the same types of arguments you've used.
Probably because they can't be.
hi mate
indexes are what they are - perfect for snapshot glossy comparisons - And for the technical traders which have grown over the decades - but there are no constants reflected- the index components are not the same since 1900, the number within the index are not the same- capital lost 100 percent are replaced with new members and the number of shares that make up and entire index have changed substantially
the current argument is they just buy and sell the companies leaving and you don’t lose
comparing an index with and Apple and orange in it in 1950 vs price of property sold in an area or gold in 1978 or 2020 when the index then has a pineapple and orange in it is not appropriate - it may be done - but not reflective imo
it’s like screaming look at Apple Share prices plunging on a chart in the last month and not looking to see the changes in the capital structure —- they will remind you of that on a split as the share price plunged but over time when something is consolidated and the share price is up - usually silence
bit like screaming about dust when it was consolidated 97 to 1 or something - of course the price chart will show a monster spike - and if you say you sold there you look like a genius - but if you followed the calls and the consolidation people lost big despite an amazing looking chart and red arrow
good luck
off to casino now - going to invest and reinvest 3 times and buy a few suburbs in nz- best investment ever
