Chapter 19 [Long-term interest rate returns in the U.S. market]

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[James: Origins and Today] Chapter 19 - Long-term interest rate returns in the US market (03/23/2023)

The long-term annual return rate of the U.S. market from 1940 to the present is 10%. In the past 80 years, the United States has experienced the agricultural era, the light industry era, the engine era, the transistor era, the computer era, and the Internet era. Each era here has experienced 10 to 20 years. Although the entire technological evolution is linear, it has created a long-term annual return rate of 10% for the entire United States.

Starting from 2020, the United States has entered an era of technological explosion. Artificial intelligence, electric vehicles, cloud computing, digital finance, digital currency, social media, robots, clean energy and other high technologies have exploded at the same time. Therefore, 2020 is the first year of the explosion of human technology. If human technology advanced in linear motion in the past, it could create such a high 10% return rate. When human technology grows explosively, the return rate for future investors will be more than 20%, 30% or even higher.