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> As long as you are reasonably sure you can hold your stocks for a few years then just hold on to them. What's 'a few years' mean to you? The Nikkei hit its
by mschaef 7y ago
> As long as you are reasonably sure you can hold your stocks for a few years then just hold on to them.
What's 'a few years' mean to you? The Nikkei hit its high of 40K around 1989-89 and hasn't traded above 80% of that in the 30 years since.
- prewett 7y agoYou could take the absolute worst case scenario if you want, I guess, but every other peak in the history of world markets has come back faster than that... Besides, that's not even fair. Why are you assuming the parent is talking about holding stocks bought at the peak? The kind of people that hold their stocks for years tend to be the kind of people who don't buy at a peak. Long-termers tend to be more of the Buffett persuasion; he has said that he wouldn't care if the market completely closed for 10 years, because he buys businesses that grow in good times and bad, and he collects dividends in good times and bad. All the while the employees of the companies are spending their efforts in making his stock more valuable.
- akhilcacharya 7y agoIsn’t that misleading given the price of the Yen?
- pradn 7y agoThat doesn't include dividends paid out by the companies in the NIKKEI.
- minwcnt5 7y agoEven with dividends reinvested the Nikkei's return over the past 30 years is negative.
- imcoconut 7y agoTheir population demographics are different from ours. We will continue to provide workers and consumers over the coming decades - economy-wide demand will return once the crononavirus threat subsides.
- hitpointdrew 7y agoA few typically means 2. Sure you can cherry pick one stock that didn't recover from 1989, but on average the market as a whole always recovers. Yes, there are outliers with some individual stocks.