https://www.youtube.com/watch?v=IoUVS9OLj-c
The real rate of return is objective, rational, and substantial. It delineates the exact performance of your capital from start point to end point. It has actual value and meaning. Like concrete beneath your feet, it’s solid ground. At its core, it is the truth.
But finding the truth is often much harder than it appears. Searching for the real rate of return can be like battling optical illusions of smoke and mirrors.
Fund managers, the media, and marketing literature for stock performance proclaim average returns. You’d think that numbers and math would be impossible to manipulate to fabricate a story different from reality. However, every day, average yields are cited as some kind of absolute, predictive authority, assuming the clout that they have no right to take.
It’s not fair to you, the one who wants to take control of your financial life and direct your outcomes. You need truth in your financial decision-making. Instead of staking your financial future on the shifting sand of average returns, it’s time you recognize them for the imposter they are, the ghost in the market, a mirage that means nothing at all.
What We’ll Cover
In today’s conversation, we’ll show you why average returns are misleading and can’t be taken at face value.
We’ll take a more in-depth look at actual market returns over the last 118 years and uncover what they mean.
And finally, we’ll reveal how to take control of your financial future and not just hope that your speculations and assumptions are accurate.
This conversation will answer:
What do market returns mean for me?What returns should I expect?How do I calculate real rates of return?What should I do to best take control of my financial future and build time and money freedom?
You’ll get the tangible facts and concrete evidence to form your own opinions and chart the course of your own financial destiny.
A Disclaimer
Beliefs don’t create reality, because believing something doesn’t make it true. However, often we cling to our beliefs, hoping they’ll materialize. Even viewing the concrete facts that contradict our perception doesn’t always bring the truth to light. We often need help to interpret what we see, so we can understand the truth, alter our thinking, and know how to respond.
Faith and hope don’t create financial freedom. Truth and reason do.
Today’s conversation will challenge your belief system because it uncovers the reality that the typical financial system tries so desperately to hide. The result will be an elevation of your thinking. In thinking differently, you’ll gain the greatest clarity and see how to rise above it, all in the same instant.
Your transformation comes along with a disclaimer that certainty often comes from doing the opposite of what everyone else is doing.
Where Your Investing Mindset Fits into the Cash Flow System
Understanding real rates of return is part of ensuring your ability to reach your investing goals. But before that, this knowledge will help you calibrate your mindset to fine-tune your goals in the first place, so you actually end up where you want to be.
Both investing and mindset are a part of the Entrepreneur’s Cash Flow System.
Today’s comprehensive conversation will help you invest well in stage 3. But, to achieve investing success, we’ll help you approach it with the right awareness and mindset in stage 1, so your efforts don’t crumble.
Markets Tumbling Amidst Positive Average Returns
The December and early January news was frantic with news about the market.
Reuters rang the alarm that it was the “worst year for stocks in a decade.” Morning Brew highlighted that “the S&P dropped 10% and the Dow 9.7%, making for the worst December for stocks since 1931.”
While we can point to U.S.-China trade tensions, a cooling economy, and rising interest rates, causality does little to quell our concerns ab...
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