All Posts Tagged With: "stocks for the long run"
The Three Rules That Will Lead to Long-Term Profits
During a two-year stretch every 20 years or so, the Standard & Poor’s 500 Index can be expected to lose 35% or more of its value.
In 1974, according to research by Ibbotson Associates, that truism manifested itself as a 37.25% downdraft. It was even worse in 2002, when investors received a 41.65% haircut.
As bad as those downturns were, they were a mere shadow of the poleaxing investors received in 1932 – during the depths of the Great Depression – when the U.S. market plunged 80%.
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Bear Markets: Your Gift From The Financial Gods?
Although we saw a furious short-term rally late last week, we have entered into official bear markets territory as of early this month. (Bear markets are defined as a drop of 20% or more from a previous high.)
This is a good thing. Legendary investors understand this. Ordinary investors don’t.
If you haven’t spent much time buying stocks getting excited about a bear market doesn’t just sound counter-intuitive, it sounds nuts. After all, how can you feel appreciative watching the value of your life-savings grind lower?
But try thinking like a chess player, a few moves ahead.
Every stock investor knows that you’re supposed to…
24Jul2008 | Investment U | Comments Off | Continued
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