2007-11-28

The 5 Year Bull Market Myth!(3)

What if we were to go back just 24 months to the year 2000.

In fact let's go back to January 3, 2000 when the S&P 500 index closed at 1,441.47.

Let's assume that this just so happened to be the date that you decided to invest your hard earned money into the market.

Would you still be up 14.19% per year on average?

Hardly.


In fact you would have spent two years with a stomach ache watching your money decline as the market dropped to the bottom on September 30, 2002.

In fact you would have lost 42.6% of your investment.


Could you afford to lose that much money in so short a time?


But some may argue that this was only a paper loss and if they would just hang in there until the market rebounded they would be fine.


The truth is the market did rebound but with what effect?




By Antonio Filippone

No comments: