We saw that with meme stocks, you see it in internet stocks, and probably going all the way going back to the tulip mania of the 17th century. We see a lot of companies with no profits where were the stock goes up over time. But really, you and I have been around the block on this, in our careers. Well, put your money into the stock market and, like magic, it goes up. And I don't think enough people stop and ask themselves that question, we just take it for granted.
But there is this insurmountable climb that just keeps going up and to the right. The stock market's been through a lot-we know that-lots of crashes, lots of bull markets, lots of bear markets. But if you do look at the track record, we're looking at somewhere between nine and 11% average annual returns going back all the way to the latter part of the 19th century. So that was the aim of the book-to fill in that missing piece of information."Ĭaleb: "Yeah, we take it for granted. And I was like, I believe you-I see the long-term history of the S&P 500-but what was never explained to me was why-what was the underlying force that caused the market to go up over time? So, because I personally was seeking that information 20 years ago, now that I know it, I just believe that there is a huge missing gap in the education of the average shareholder out there, that they don't know why it's going up. But the number one question that I had about investing was the title of my book: why does the stock market go up? So many of those fantastic books all say you should save a portion of your income, you should invest with a long-term mindset, you should dollar-cost average into the market, and the market continually goes up. And I've read all of the classics on investing about Warren Buffett, Peter Lynch, Jack Bogle, etc, and they are just phenomenal, fantastic resources for investors. I discovered investing right after I graduated from college in 2004, and as soon as I read my first book about money and personal finance, I just went on a binge reading series where I just devoured absolutely every book that I could possibly get.
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