Class Notes: January 21st

• DOW: top 30 businesses in the United States
• named after John Dow, who created the list
• Old boys game: hard to get into it
• S&P 500: top 500 largest companies in the United States
• S&P: standard and pores
• past 10 years, stock market hasn't doesn't well overall
• if I invested 10,000 dollars in 2003, how much would it be worth today
• my guess: $25,000
• actual: $19,490
• if I invested 10,000 dollars in 1993, how much would it be worth today
• my guess: $30,000
• actual: $49,000
• http://quote.morningstar.com/fund/f.aspx?t=vfinx 
• What was the US market's average annual return for the last decade
• last 10 years: 6.9%
• last 20 years: 8.2%
• investing $5 a day, $150 per month, $1,800/year for 47 years will make 84,600
• but with an interest rate of 8.5 it will have increases to 1,039,895
• investing 25 a day, 750 per month, 9,000 a year for 25 years will make 225,000
• but with interest: 768, 190