Thursday, March 05, 2009
How Long Are You Gonna Hold On?
If the 'economic downturn' is actually as bad as economists are telling us, then how long are you going to hold on the stocks in your hands? Will you still be alive twenty years from now on?
It took 12 years from 1930 to 1942 for the stock market to start a serious growing, and another 13 years when it recovered to its pre-collapse level. That's 25 years in total. However, many people argued that the US economy was saved only by the world war.
It was stuck on 10,000 points for 17 years from 1966 to 1983.
Now we were told it is the worst since 1920. Assuming the US economy will regain its energy, how many years are we looking at? Of course, the good news is that no matter what that number is, we could subtract 1 from it because we have already in it since the beginning of 2008.