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by jmathai 1265 days ago
Curious about this. The geometric mean of return for the S&P500 is about 7% over several decades. The longer the time horizon the more likely you’ll hit 7%.

Why do you think it’s similar to holding cash?

1 comments

Not that its the same return as holding cash (clearly that isn't true), just that if VTSAX doesn't pay off as a bet long term, it will be because the dollar has ceased to be valuable.

Basically, a bet on VTSAX is underpinned by faith in the dollar. If either one crashes the other is worthless.