Stocks Not All They're Cracked Up To Be The Last 10 Years

[jeffrey]

Over the past 200 years, the stock market's steady upward march occasionally has been disrupted for long stretches, most recently during the Great Depression and the inflation-plagued 1970s. The current market turmoil suggests that we may be in another lost decade.

The stock market is trading right where it was nine years ago. Stocks, long touted as the best investment for the long term, have been one of the worst investments over the nine-year period, trounced even by lowly Treasury bonds.

Stocks Tarnished By 'Lost Decade' - WSJ.com

[sweeps]

I can see Scanner grinning big at that post. ==>

If stocks marched upward at a steady, constant rate, you wouldn't get a 9-10% return on your money. I'm enjoying buying lots of stock right now while others are hiding under the blanket. I know the bullish times will return.

[Broken Arrow]

I don't know, I found the article to be too bearish, bordering alarmist. Here's the thing:

1. The article is basing its findings on the market index. While that's not inappropriate, and it's true we're in a down market, but the stock market is a vast arena filled with plenty of exceptions. Some stocks are resistant to down markets, while others can thrive in it.

2. Long term investors should also remember that the market is cyclical. Chances are good there will be many more like these, along with the ups, and in the end, it may not even matter much.

3. The article is also basing on the performance of the past several years, and all together now: Past performance is no guarantee of future performance. If anything, the fact that we have been in a down market has finally sunk in, and I believe that we're actually in the midst of a correction now. That's a good thing.

4. And finally, as sweeps pointed out, the best times to buy are in down markets. That's when bargain buys are typically at its most plentiful.

I agree with the evidence, but not the conclusion.