YCharts?

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vnatale
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YCharts?

Post by vnatale » Mon May 15, 2023 8:13 pm

Has YCharts ever been discussed here? I do not remember ever seeing this name here. Maybe because it is not a free product (though it does have a free trial)?

https://ycharts.com/

Vinny


Roughly Right or Precisely Wrong
Posted May 14, 2023 by Ben Carlson


I have a love-hate relationship with historical market data.

On the one hand, since we can’t predict the future, calculating probabilities from the past in the context of the present situation is our only hope when it comes to setting expectations for financial markets.

On the other hand, an overemphasis on historical data can lead to overconfidence if makes you believe that backtests can be treated as gospel.

In some ways markets are predictable in that human nature is the one constant across all environments. This is why the pendulum is constantly swinging from manias to panics.

In other ways markets are unpredictable because stuff that has never happened before seems to happen all the time.

I like the old saying that I would rather be roughly right than precisely wrong.

Historical market data doesn’t tell you what’s going to happen when it comes to investment outcomes but it can help you understand a wider range of potential risks.

It can also show you the magic of compounding when it comes to the stock market if you get too caught up on the risk side of the equation.

YCharts has a tool called Scenario Builder that allows you to look at the impact of investments, contributions and withdrawals on different holdings and asset allocations over time.

Here’s a simple one:

Let’s say you put $5,000 into the initial S&P 500 ETF (SPY) right around when it started at the beginning of 1994. On top of that you also contribute $500/month into the fund.

Simple right?

Here’s what this scenario looks like:
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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