Prior to now 30 years the next has occurred:
1995-2000: Dot-com bubble
1997: Asian monetary disaster
1998: Russian default and LTCM collapse
2000-2002: Dot-com bust (S&P -50% and Nasdaq -83%), 9/11, Enron/WorldCom scandals
2003: Iraq Conflict
2007-2009: Nice Monetary Disaster, housing costs collapse 26%, U.S. inventory market falls 56%, Bernie Madoff Ponzi Scheme outed
2009-2012: European Debt Disaster
2013: Taper Tantrum
2016: Brexit
2018-2019: U.S.-China Commerce Conflict
2020: International pandemic, oil costs go destructive
2021-2022: Provide chain shock, Russia-Ukraine warfare, 9% inflation, charges spike
2025: Liberation Day
This record may go on and on. There’s loads of different stuff that occurred that I missed.
Regardless of all of this, the S&P 500 returned 10.4% per yr:
The Sixties, Seventies and Nineteen Eighties have been no picnic both. But the earlier 30 years noticed annual returns of 10.6% per yr.
Loads of actually dangerous stuff occurred within the Thirties and Nineteen Forties. That’s two of the worst a long time in fashionable historical past. The inventory market was up greater than 12% per yr within the 30 years from the summer time of 1935 via the summer time of 1965.
Loads of dangerous stuff will occur once more. I can assure it.
I don’t know when and I don’t know why however there shall be crashes, recessions, monetary crises, warfare, geopolitical upheaval, and extra.
And I nonetheless put money into the inventory market.
Why?
Unhealthy issues occur and life goes on.
Folks get up each day seeking to higher their place in life.
Companies are consistently searching for methods to earn more money.
The inventory market is the one place the place anybody can put money into human ingenuity.
I’ll take that wager even when there’ll absolutely be setbacks alongside the way in which.
Additional Studying:
31 Years of Inventory Market Returns
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