Search This Blog

016. S&P vs. CPI

The market price of S&P Index is trying to keep up with the rise of the Consumer Price Index. 

As indicated in the following chart, a retired investor's portfolio will fall behind the cost of living if the retirement funds are kept by banks and financial services firms in index-based investment funds.

For a retirement investor to succeed, the invested portfolio must be composed of funds and ETFs that are growing faster than the CPI. That requires careful screening of investment opportunities out of a collection of well  over 9,000 investment offerings.


SOURCE: http://www.econ.yale.edu/~shiller/data.htm

No comments:

Post a Comment

For comments please e-mail paul@strassmann.com