Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

History may not repeat itself, but it rhymes...

18/7/2013

0 Comments

 
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. 
0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.