There is a myth floating out in the financial world that over the long-term the stock market returns 10% or better. Well consider that from 1999 to 2009 the market returned a whopping .08%. If you where 50 yrs of age or older how will you make up for making no money for a decade. how can you make up that decade even if you are 40 yrs old. Whats more important, how will you make up for not making money for the next decade. I know you heard the recession was over and because your retirement account needed that to be true you breathed a sigh of relief. Let me give you the actual and factual truth in a picture that has nothing to do with my opinion or anyone else’s. Look at the picture and tell me where we are headed for the next decade.
This chart shows the last 100 yrs in the stock market. The green area shows bull markets where the economy and the stock market were growing. The red area shows secular bear markets which is when the market goes a decade or more and basically finishes exactly where it started.
I hope it is not lost on you than every bull market was followed by a much longer secular bear market. Much shorter bear markets were followed by 11,16, 17 year secular bear markets. We just came out of the longest bull market in recorded history 18 yrs, 7 yrs longer than any other bull market in history. It would stand to reason that we are headed for an at least equally as long bear market to get us back in line.
Notice we are only 10 yrs into the secular bear market. Are you prepared to go another decade without making money in your retirement accounts? Look at you balance asset portfolio in your IRA or 401K and you will see that you account reflects what this chart shows.
Also notice that on the graph even in the red never stays flat so people stay in because every now and then the market shows signs of life and they are convinced to ride it out. But in the end it ended right back where it started and the only money in most people’s retirement accounts is the money they contributed.
I’d love to help point you in the right direction and get you the help you need to stop going decades without making a profit. My company works with the smartest investment advisors, accountants, lawyers, and mortgage planners and we can get you the information and education you need to thrive.
How will you beat the Bear!