I am new to the stockmarket and until recently have only make use of super funds quite blindly. Investment seminars always posted a rosy picture of the stock market but I really want to appreciate it better.
I looked up some of the major stock market indexes today. It shows, compared to 10 years ago in round numbers, that it has dropped marginally
10 years ago Now
DOW 11,000 10,000
FTSE 6000 5000
N225 18,000 10,000
I appreciate that many Asian market and Australian market had performed better, this seems like a stagnant market over 10 years. While there had just been a major recession, the market had started improving and I cannot see things being much better over the next year.
Does this contradict how everyone painted such a rosy picture? I know that these figures does not include dividends, but surely that does not come to much. Does the index measurement correct for inflation?