The stock market always comes back to even and then moves up from there, after a bear market.
I have read a version of this statement over and over on financial message boards and articles about investing.
Yes, in the past the stock market always came back but are you at least 90% convinced that this will happen after the next bear market (stock market crash)? Maybe it will just sit there for years and years at the low number. Or it will continue to fall. Just because the market came back in the past does not mean it will in the future.
Maybe that 3.5% CD I saw advertised may be a good idea after all!
A continued bad stock market was a overwhelming fear by early 2009. By February 2009, the stock market had dropped 56% and there was really no sign it would ever go up again. This was after a really bad period from September 2008-to February 2009 when the stock market dropped 45% in just 5 months. If you asked most people in February 2009 if the stock market would come back, like it always did, they would have said no.
What will people think about the stock market going back up after the crash of late 2019 when the market drops 60% due to a global recession and trade war? Your thoughts?
Submitted October 29, 2018 at 03:38AM by KillingTime56 https://ift.tt/2OX9vCj
