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If you had a crystal ball...

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  • If you had a crystal ball...

    I know many of us don't - but historically speaking, how often have strong markets followed a market like 2020's? Is the feat repeatable?

    Since my net worth is smaller than many others', we would be derailed by any severe recession(s) or huge correction(s) in the future. Just wondering what the chances of that happening are or if we can expect a roaring or even decent 20s?

  • #2
    I wish I knew.
    But then, I guess I don't care so much.
    I've been through peeks and valleys before, and I've always came out ahead in the long run
    I'm in it for the long haul and retirement is still a couple decades away.
    A correction today won't matter in 15 years

    Brian

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    • #3
      Interest rate will be zero for the next couple of years. No crystal ball needed, the fed already gave you the answer.

      Historically the market never crashed when interest rate is zero, including when there's a virus killing millions.

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      • #4
        Nobody has a crystal ball.

        That said, Singuy is correct. Conditions haven't changed. Interest rates are zero. The only worthwhile investment for most people is stocks so money will keep pouring in to the market for the foreseeable future.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

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        • #5
          My crystal ball fell off the shelf and broke a long time ago. 2020 Had some big peaks and valleys in the market, but overall has been a pretty good year.

          The stock market is based on the success of businesses, and all I can tell you from being in business for (40) years is most of the time you can expect to have adequate business, make a little money and do pretty well. But .... you should expect a significant "recession" every 7-10 years. When and how these dips occur is pretty unpredictable and some are worse than others. The best protection to get through these times is to stay out of excessive debt and to have a nest egg that will allow you to ride through a year or two of tough times. Having some cash, real estate, business interests or other investments outside the stock market provides some level of protection.



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