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For long term investors, does this even matter? If your time horizon is 10+ years, it seems like this is just water under the bridge.
by jorblumesea 7y ago
For long term investors, does this even matter? If your time horizon is 10+ years, it seems like this is just water under the bridge.
- tabtab 7y agoIt does matter: it's time to get your "buying kit" prepared because good deals are around the corner.
- H8crilA 7y agoYup, trade bonds for stocks. Never go 100% on stocks. As Buffett says: "I will never be caught short on cash".
- neural_thing 7y agoThe S&P 500 didn't exceed 1929 highs until 1954. Not saying it's a perfect parallel, but there are definitely precedents of stocks not working well for decades.
- H8crilA 7y agoNo, you're not including dividends. It had positive returns way before 1954. But yeah the 30's was called a depression for a reason.
- _delirium 7y agoJust to put a date to this: including dividends, it matched its 1929 high again around 1943/1944.
- ashelmire 7y agoWhat if you continuously invested over that time?
- gnopgnip 7y agoRecession does not usually mean a stock market crash either
- tempsy 7y agoHard to say. I think we've entered a period of time when extremes (black swans) are the new normal.
- kgwgk 7y agoSometimes corrections do matter. If you bought at the peak in 2000, including dividends and adjusting for inflation it would have taken 13 years to get back to the initial level. Maybe it’s nothing, maybe the S&P 500 won’t get back to 3000 in a while. Probably it’s nothing...