“But even if you bought stocks only right before the 2000 and 2008 market tops — and then bought stocks again only when they got back to May 2015 highs — you’d still be making money.
This chart, which comes to use from Raymond James analyst Andrew Adams, shows that $100,000 spent on the S&P 500 at each of these three most recent tops still nets investors an $80,000 gain (or 26.6%) over this period.”
Okay. Let’s make a couple of real-world assumptions. Most people, by the time they enough to effectively invest and actually start doing so, is about 45 years of age. This gives them about 20-years to their retirement goal.
Here’s the problem, since most people “assume” the markets return 8% a year, a myth previously debunked here, a 26% return over 16-years is just 1.625% annually. Buying a bond fund would have yielded in excess of a 150% rate of return or 9.375% annually with substantially less volatility.
“Getting Back To Even” never has been, and never will be, a successful investment strategy.