What do you mean my money didn’t consistently grow over 5 years? Whatever the investment, we all wish that we could rely on our money to grow at an expected rate, but the reality is more accurately represented below:
Economic theory of the ‘70s
The graph on the left reflects the 1970s attitude of traditional economics found in “Efficient Market Theory” (EMT), where it’s assumed that people act only to maximise returns and minimise risk, and that all the available information is reflected in historical prices. Under this theory, investors wouldn’t be able to purchase undervalued stocks or sell stocks at inflated prices.
Fissures to this theory started forming in the 1980s as stocks showed a lot more excess volati...