I don’t think this is the big drop but I do think returns on stocks over the next ten years is going to be mid single digits. This has been the best bull market since I started investing back in early 80’s and anyone expecting returns like the last ten years is nuts.
Somewhere in that time period (10 years) there will be a recession or two and if this little correction gave you the willies and made you want to sell, don’t be in the market. I expect at some point there will be a drop closer to 40% (as the market overshoots to the downside as it always does) and taking permanent impairments to your wealth when that happens will be disaterous.
If the market ever goes to zero, you will have bigger problems than money. Despite the nutty stuff you hear during a serious sell off, it doesn’t actually happen. Learn to take a punch without panicking and the next ten years will be okay. Not great. But okay.
|