Comments on: CDs Investing Beating S&P Investing, Since 1994 http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html personal finance blog with anecdotes, advice and commentary. Sun, 22 Nov 2009 06:04:27 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Dividend Growth Investor http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-314115 Dividend Growth Investor Wed, 15 Jul 2009 17:56:02 +0000 http://www.bargaineering.com/articles/?p=4893#comment-314115 Actually the study did include dividends. Actually the study did include dividends.

]]> By: Dividend Growth Investor http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-314114 Dividend Growth Investor Wed, 15 Jul 2009 17:54:35 +0000 http://www.bargaineering.com/articles/?p=4893#comment-314114 Nickel, Great minds thinks alike ;-) Nickel, Great minds thinks alike ;-)

]]> By: eric http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313932 eric Wed, 15 Jul 2009 01:44:02 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313932 Interesting but I hope people don't go running in hordes to CDs now. :S Interesting but I hope people don’t go running in hordes to CDs now. :S

]]> By: Scott http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313724 Scott Tue, 14 Jul 2009 12:20:44 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313724 Saw analysis of this phenomenon elsewhere on the web. What about dividends? Stocks pay them, CDs don't. That is pretty big difference that's not included in this analysis (I don't believe). Saw analysis of this phenomenon elsewhere on the web. What about dividends? Stocks pay them, CDs don’t. That is pretty big difference that’s not included in this analysis (I don’t believe).

]]> By: Erik http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313572 Erik Tue, 14 Jul 2009 01:19:28 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313572 It also includes $10K annualized dollar cost averaging. Wonder what would happen with a more balanced $1K/month dollar cost averaging? I bet the CD doesn't come close! It also includes $10K annualized dollar cost averaging. Wonder what would happen with a more balanced $1K/month dollar cost averaging? I bet the CD doesn’t come close!

]]> By: Erik http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313570 Erik Tue, 14 Jul 2009 01:14:52 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313570 Well put Ian! Well put Ian!

]]> By: Patrick http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313567 Patrick Tue, 14 Jul 2009 01:00:06 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313567 I agree with ian in that if you saw the drops coming and moved your money to safer investments, then you would be far ahead. The only problem is that most people, especially with their retirement money, don't ever look at it. This just goes to show that it's important to keep any eye on our investments. I agree with ian in that if you saw the drops coming and moved your money to safer investments, then you would be far ahead. The only problem is that most people, especially with their retirement money, don’t ever look at it. This just goes to show that it’s important to keep any eye on our investments.

]]> By: Dave http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313414 Dave Mon, 13 Jul 2009 18:51:16 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313414 I disagree, this graph tells me that we should be investing in stocks right now. Based on this, they are really "cheap" and would provide the most potential growth. I disagree, this graph tells me that we should be investing in stocks right now. Based on this, they are really “cheap” and would provide the most potential growth.

]]> By: nickel http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313384 nickel Mon, 13 Jul 2009 16:26:14 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313384 Dividend Growth Investor: I was about to say the same thing. :-) Dividend Growth Investor: I was about to say the same thing. :-)

]]> By: Rob Bennett http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313382 Rob Bennett Mon, 13 Jul 2009 16:22:41 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313382 By no stretch of the imagination does this show that people should be invested in CDs today. What it show is that people should be invested in CDs when stock prices are what they were from the mid-1990s through 2008. Stocks have <i>always</i> provided horrible long-term performance from those sorts of price levels. The problem is that many people bought into the massive marketing campaign led by The Stock-Selling Industry not to consider price when investing in stocks. I think it would be fair to say that that advice is aimed at helping The Stock-Selling Industry, not the middle-class investor. Rob By no stretch of the imagination does this show that people should be invested in CDs today.

What it show is that people should be invested in CDs when stock prices are what they were from the mid-1990s through 2008. Stocks have always provided horrible long-term performance from those sorts of price levels.

The problem is that many people bought into the massive marketing campaign led by The Stock-Selling Industry not to consider price when investing in stocks. I think it would be fair to say that that advice is aimed at helping The Stock-Selling Industry, not the middle-class investor.

Rob

]]> By: Dividend Growth Investor http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313366 Dividend Growth Investor Mon, 13 Jul 2009 14:26:30 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313366 Last time this happened, stocks doubled over the next 5 years. Last time this happened, stocks doubled over the next 5 years.

]]> By: ian http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313357 ian Mon, 13 Jul 2009 13:55:12 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313357 When the title includes '...Since 1994' it is implied that CDs have continued to do better for the last 14 years. While actually, CDs have done worse (far worse at times) for all but two years on the graph. So, unless you withdrew from the S&P in 2002 or 2008 (or this year), you made more money in your stocks than you did in the CD. You mention this in your third bullet point but the title says almost the opposite. I would re-write the title to say 'S&P has higher return than CDs in most years'. Not as sensational, but sure does sound more accurate. When the title includes ‘…Since 1994′ it is implied that CDs have continued to do better for the last 14 years. While actually, CDs have done worse (far worse at times) for all but two years on the graph. So, unless you withdrew from the S&P in 2002 or 2008 (or this year), you made more money in your stocks than you did in the CD.
You mention this in your third bullet point but the title says almost the opposite. I would re-write the title to say ‘S&P has higher return than CDs in most years’. Not as sensational, but sure does sound more accurate.

]]> By: © b e e n s w a n k http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313355 © b e e n s w a n k Mon, 13 Jul 2009 13:23:40 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313355 I think it's a good time to invest in Standard & Poor. I think it’s a good time to invest in Standard & Poor.

]]> By: tom http://www.bargaineering.com/articles/cds-investing-beating-sp-investing-since-1994.html/comment-page-1#comment-313347 tom Mon, 13 Jul 2009 12:29:57 +0000 http://www.bargaineering.com/articles/?p=4893#comment-313347 Stats like this are dangerous. Whether or not "the Big Picture" was trying to show a surprising statistic, the financially uneducated public might use this as a reason to bail from the market and jump into CD's. Stats like this are dangerous. Whether or not “the Big Picture” was trying to show a surprising statistic, the financially uneducated public might use this as a reason to bail from the market and jump into CD’s.

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