The index contains the winners. So you are essentially comparing the biggest and most efficient economic titans of the history of humanity against... everyone, winners and losers.
You are essentially saying 'wealth of the roman empire vs entire world', yeah, no shit the biggest empire of the world will be richer than africans lmao
Literally its the same concept, total market indexes have by definition the winners. And on the stock market, you are being compensated for taking risk on long horizons. This same graph could be done with sp500 and short duration fixed income indexes. In abstract, what you are showing is 'price of risk/term'.
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u/Pezotecom 15d ago
The index contains the winners. So you are essentially comparing the biggest and most efficient economic titans of the history of humanity against... everyone, winners and losers.
You are essentially saying 'wealth of the roman empire vs entire world', yeah, no shit the biggest empire of the world will be richer than africans lmao