http://www.nyfiscalwatch.com/?p=975 State and city finances - and the economy Fri, 10 Sep 2010 01:19:55 +0000 http://wordpress.org/?v=2.6.2 http://www.nyfiscalwatch.com/?p=975#comment-1131 Tom Wed, 11 Mar 2009 13:34:09 +0000 http://www.nyfiscalwatch.com/?p=975#comment-1131 This doesn't seem to be a terrible proposal. The stock market does on average return 10% per year (6% I believe since the turn of the century but closer to 10% since the 1960's). Obvious there are down years (like this one). But then there are year where the S&P is up over 40%. It's a historical average and I don't think it's such a stretch to think that it will continue at such a rate in the future. As long as a properly diversified portfolio of all the major asset classes are used I think the plan could work. Dumping all of your money into gold right now is an awful idea I think, especially with gold trading at around $1000 an ounce. I don't hate gold either, it should play a part in everyones portfolio in and around 5%. This doesn’t seem to be a terrible proposal. The stock market does on average return 10% per year (6% I believe since the turn of the century but closer to 10% since the 1960’s). Obvious there are down years (like this one). But then there are year where the S&P is up over 40%. It’s a historical average and I don’t think it’s such a stretch to think that it will continue at such a rate in the future. As long as a properly diversified portfolio of all the major asset classes are used I think the plan could work. Dumping all of your money into gold right now is an awful idea I think, especially with gold trading at around $1000 an ounce. I don’t hate gold either, it should play a part in everyones portfolio in and around 5%.

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