That famous quote by Mark Twain just shows that if history were the only thing to making money in the stock market then historians and librarians would all be billionaires. He was right though in that there are instances in the past that look eerily similar to our present condition.
We hit a new high today in numerical terms for the stock market, but when adjusted for inflation we're not quite at a new high yet when compared all the way back to 2000. If the past 13 years has been painful for your portfolio, then I have some bad news. It may not be over...
There have been multiple instances in the past when the stock market was much lower even after 16 years. The periods from 1906-1922, 1966-1982 and of course the Great Depression, which didn't reach news highs for 25 years!
You need to be aware that you could see a significant drop in the stock market between now and the end of the decade, but probably in the next 3-5 years. It wouldn't surprise me to see a 30-50% drop from current levels. Now here is the good news! At that point when the market crashes you will see a tremendous buying opportunity that usually only comes along once, maybe twice in a lifetime. At which point a new bull market will emerge that could very well last for a decade or multiple decades.
We hit a new high today in numerical terms for the stock market, but when adjusted for inflation we're not quite at a new high yet when compared all the way back to 2000. If the past 13 years has been painful for your portfolio, then I have some bad news. It may not be over...
There have been multiple instances in the past when the stock market was much lower even after 16 years. The periods from 1906-1922, 1966-1982 and of course the Great Depression, which didn't reach news highs for 25 years!
You need to be aware that you could see a significant drop in the stock market between now and the end of the decade, but probably in the next 3-5 years. It wouldn't surprise me to see a 30-50% drop from current levels. Now here is the good news! At that point when the market crashes you will see a tremendous buying opportunity that usually only comes along once, maybe twice in a lifetime. At which point a new bull market will emerge that could very well last for a decade or multiple decades.
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