Not just China’s economic growth
In the past 17 years, China’s GDP has grown nine-fold.
But what’s truly mind blowing is that buying the Shanghai Composite equity index 17 years ago and forgetting about it would have been one of the worst things you could possibly do.
From 2000 to today, the index is up 78%. Although that might sound decent, it’s not. It’s a compound rate of less than 3.2%, which is about what you would have gotten for holding cash and less than the return on almost any bond.