Is investing in the stock market outdated?

[Anonymous]

In the last 5 years the s&p500 have gone up by 100+% yet the purchasing power of that money is completely eroded

[Anonymous]

How do you figure the purchasing power is completely eroded? Inflation is a constant, yes. But over the past 25 years Inflation has averaged about 2.5 to 3. Conversely the market has grown at 9.7% on the average.

I myself have invested in the market for the past 25 years. Prices have almost doubled in that time. But my nest egg has nearly quintupled.

Ain't get me wrong. Prices do always seem like they never stop rising. And the growth of my nest egg does seem to take forever. But the REALITY is AT THE RATE of the past 25 years. I'll be able to retire in 11 more years.

What I'm more concerned about is a sudden and prolonged collapse of the market (much like "08", but prolonged). Because i had time back in "08". But I ain't got time to make up for lost compounding today. I say this today as my largest holding today took a 12,000 hit today. It's hard for me to get mad though because as bad as it's performance was today it's beat the broader market by over 2 to1. Which only illustrates my point. This is a turtle race.

[WindAtMyBack]

The stock market has always been a dangerous place to play. And fighting against inflation has always been a thing. But you can't do anything about inflation. You can only invest in whatever is the best option for you at the time.

You also can't look at such a short time period as five years. The stock market is a long term play. Long term, the stock market has always done pretty well.

Plus, the past five years have been an unusual time with COVID screwing everything up. We still haven't completely recovered from it. That's a one-off thing and almost nothing about the economy can be properly judged during that period.

[Anonymous]

When the purchasing power of the money goes up again, you will still have the same gains in the market.

[Anonymous]

Short term probably
Long term has legs with the compounding, I like tangibles because I'm old and cynical

[Ariesman81]

It's outpacing inflation so... no

[chickychickyparmparm]

those two things are unrelated.

[LazerBean]

No lol

[jahaims]

No lol

[Anonymous]

Alright.