#1: The Only Thing You Need To Know About The Stock Market On a daily basis the stock market is kind of like a casino, albeit one in which the odds are slightly in your favor. But extend your holding horizon to 20 years and it quickly becomes a sure bet.
Perhaps. When earnings plummeted in 2020, the price-to-earnings ratio mooned. But 2021 looked drastically different. In fact, earnings grew so much, that the P/E ratio has actually compressed.
It’s a stealthy, ruthless killer that can quickly put your dreams of building wealth six feet under. The good news is that you have an amazing ally to fight it off.
There are many implications here, but to me, the most important one is as follows: In a world where inflation runs 5%+, borrowing money at a fixed rate of 1-2% is an absolute no-brainer.