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Idbuytht4adollar t1_j683jiy wrote

Reply to comment by Coolzx in Found some old Reddit threads from 15 years ago talking about the 07-08 recession by Fantastic_Bar3109

You have to adjust for inflation. Still prob a solid return

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my-user-name- t1_j68kqmw wrote

No you don't, the return is calculated to compare it to other ways you could have used the money. If you had put all your money in a sock and hid it under your bed in 2007, you'd still have the same amount of money. If you had bought at the very top, you'd have a 150% return. In both cases there's inflation, but calculating returns is done to compare the two and show that yes, even buying at the very top is usually better than keeping all your cash under a mattress.

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Idbuytht4adollar t1_j697ayf wrote

yes you do the idea is to eventually use the money. if you got a 2 percent annual return for 10 years then your still able to buy the same things. if you doubled your money but now a house is 4x the money how does that help

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8yr0n t1_j6ag2f1 wrote

Your making sense and planning way too far ahead for this bunch…

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cayoloco t1_j6ba5j3 wrote

Then you should have bought real estate instead of stocks. Different assets have different returns.

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BarberExpert9114 t1_j6bz3ao wrote

Real Estate prices != inflation rate housing big Up for long time And Big Down for small time. Inflation =slow up and slow down.

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