Prepare for a rude awakening.
Market crash is imminent
-
They retraced their nominal highs sooner. Adjust for inflation and it took a lomg time.
This is a myth that stems from lazy advisors and recency bias. After adjusting for inflation, index fund investors who failed to sell in 1929 or 1965 would have needed to wait about 30 years to return to these pre-crash highs. Those who failed to sell before the Dot-Com bubble popped would have needed about 13 years after adjusting for inflation. Failing to sell before a major market crash is fatal to your portfolio.
Time in the market beats timing the market. Bring it on
Did you even bother to check the stock market’s history before saying this? The Dow retraced it’s ‘65 highs in a few years.
1930 closed 164 and 1936 closed 179. Also this doesn’t factor in dividends. -
On a personal level I like the rebounding market. On a pragmatic level I'm a bit concerned by it. Reports indicate most of the rebound is driven by automatic buys rather than investor confidence. Wouldn't be surprised to see another big drop this winter back down to around 31000-32000. We're not out of the forest yet, not by a long shot. It's going to be an ugly winter in Europe and the US isn't immune from it.