Okay, I am getting a little concerned here...
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Originally Posted by peter12
But 6.4% was the right answer, and 7% wasn't.
To be clear, I am not complaining. I invest a lot of my savings, and I do okay, but there is some absolute nonsensical bragging going on this thread with basically circumstantial and anecdotal evidence being offered.
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You understand that the article you referenced was stating its views on
expected returns right? That's not what the market actually returned.
Quote:
Originally Posted by peter12
Then, you're lying. Average RoR for Canadian equity in 2016 was 6.4%. How did you beat the market?
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Nope. Maybe not.
Quote:
Originally Posted by peter12
If you are regularly beating bench-marks, then you are either a criminal or incredibly lucky.
For goodness sake, I have a CFA 1 and I work in marketing, and I know this stuff. I barely passed Grade 12 math, and I get that the law of averages applies for a reason.
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You need to learn the difference between expected return and actual returns if you are planning on becoming a CFA.
As for your claims that people are lying, most people are listing their returns on index funds which, by definition, aren't beating the market. The simple fact of the matter is that market returns have been higher than 7%. And they usually are (over reasonable time periods).
And yes, I am talking about geometric returns.