Question

0.

After your close call, you decide the stock market is too risky and you keep your
money out for good. Jane decides to just leave her money in and see what happens.
Who would have more money in 2019 just before the bear market caused by the
COVID-19 pandemic? How much more? (Hint: For Jane's total, you will do three separate
calculations for the three different periods 2003-2019)

Answer 1

Assuming Jane invested her money at the same time as you did and didn't get out, she would have more money in 2019 just before the bear market caused by the COVID-19 pandemic. Over the course of the three periods 2003-2019, the S&P 500 had a total return of approximately 186%, meaning that Jane's portfolio would have grown significantly more than yours. Assuming Jane invested the same amount of money as you did, she would have had roughly $34,400 more than you in 2019