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The Myth of Cash on the Sidelines

The Compound and Friends

NOTE

Expect Returns Beyond the Average

Average returns often mask the potential for higher gains seen in positive market years. While the average might reflect upper single digits, real-time returns can be closer to 7%. It's crucial to acknowledge that significant downturns can skew perceptions of returns, yet years with substantial gains, like 20%, are more common than downturns. Understanding statistical concepts like mean, median, and mode highlights that individual experiences with returns can significantly differ from average expectations.

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