What Would 12.5% Annual Returns in Oil, Gold and the Dow Look Like?

Posted by

Price targets everywhere!

“Oil to $300” says the Tootsie Pop Owl in Barron’s.  “Dow to 36,000” says the man who needs to sell enough books to pay for his niece’s orthodontic work.  “Gold to a million” says the raving lunatic who’s spent the last year double-short the Nasdaq because of fractional reserve lending or whatever.

Calculating price targets always makes buffoons out of even the smartest guys in the game, but working backwards with a rate of return in mind at least injects some rationality into the process.  My friends at the Notorious B.I.G. did a work-up of what 12.5% annual returns would mean for Oil, the Dow Jones Industrial Average and Gold…

When you compound and add enough time, all of a sudden targets that may seem completely off the wall at first blush end up seeming a bit more…possible.

Source:

Oil at $300 and Dow 37K By 2020? (Bespoke Investment Group)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. click here commented on Sep 14

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  2. click here commented on Sep 21

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  3. bitcoin loophole reviews 2020 commented on Sep 28

    … [Trackback]

    […] There you will find 95483 additional Information on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  4. copy Best Bvlgari commented on Oct 30

    … [Trackback]

    […] There you can find 18448 additional Info on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  5. secure DevOps commented on Dec 01

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  6. 토토 commented on Dec 16

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  7. copy rolex watches women commented on Dec 30

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  8. replica rolex sea dweller commented on Dec 31

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  9. mơ thấy đỉa bám đầy người commented on Jan 05

    … [Trackback]

    […] Find More on to that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  10. Software testing commented on Jan 11

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  11. manulife bank canada commented on Jan 14

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  12. Digital transformation solutions commented on Jan 17

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  13. Acer TravelMate P633-V manuals commented on Jan 22

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  14. marijuana for sale commented on Jan 27

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

  15. AWS DevOps commented on Feb 07

    … [Trackback]

    […] Here you can find 955 more Info on that Topic: thereformedbroker.com/2011/02/15/what-would-12-5-annual-returns-in-oil-gold-and-the-dow-look-like/ […]

HowIInvestMyMoney