for the second day in a row. Today and yesterday the SPX traded above it's record closing high from 2000 but closed below it. The NASDAQ closed up. I seem to be bouncing back on trading. I finally am exceeding $6000 in profit from futures trading in my IB account. Been going sideways for a couple of months there. The model is still long and I am getting more mentally aligned with trading the model. Platinum Asset Management (PTM.AX - they manage PMC.AX which I am a shareholder of among many funds) IPO-ed today. The IPO price was set at $A5.00 in the prospectus on an a priori basis. No book build. No institutions could buy. It opened at $A8.50 today. Now that is nice! Unlike Interactive Brokers :( PTM.AX has an 87% return on stockholders equity! Funds management can be a very profitable business...
Anyway, reflecting on the SPX touching on its all-time highs... the rate of return on the SPX before any fees etc. has been around 2% per year (the dividend yield) since the all time high in March 2000. That's more than 7 years. Something to think about when you read the next blogger talking about the 12% rate of return on the SPX... You can do better than that 2%. The MSCI World Index has returned around 4%. I've returned around 8% p.a (and that's after all the fees I've paid). There are funds out there that have done better than that. Of course they are not "low cost index funds".
OTOH if you've been dollar cost averaging since March 2000 your average returns will be considerably better - on the SPX something nearer 5% p.a.
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