- 100% of the 10 year periods in the history of the stock market has made money.
- 97% of the 5 year periods in the history of the stock market has made money.
- Since 1970, 38 years, the market has gone down 10% or more 10 time. 9 of those 10 times it completely recovered everything it lost within 2 years. And the first year it came back after it bottomed it averaged a 33% rate of return.
- When the current market bottoms and you miss the upswing, you will be mad as . . . . if you panicked and sold out.
- So relax, take a deep breath and count your blessings in life.
Friday, October 10, 2008
Perspective. . . . on the market
I'm a facts based guy. So when I look at something or make decisions, I want to see the data. If you look at the stock market through a very narrow time frame, you'll be scared silly. Here's what you need to think about to get some perspective.
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2 comments:
I've heard these facts before - and don't doubt them. Do you know where to find the research to support them? The actual data is what I'm looking for so I can tell others where to find them?
Jason,
I took the facts for this post from Dave Ramsey. However, there are web sites that explain how you could if you wanted to, calculate this information for yourself. Here's a link from USA Today.
http://www.usatoday.com/money/perfi/columnist/krantz/2008-04-22-historical-returns-stocks_N.htm
I hope this helps.
Todd
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