I get so tired of hearing “the stock market took 10 years to make new highs ….” blah blah blah!!
Always muttered by bearish people, especially 25 year olds still living home with mommy worried that their $5000 portfolios won't become $1 million in 5 years lol.
From 2000 to 2010 is oft sighted as the “lost decade” and probably everyone in those days were talking about timing the bottom and or “staying in cash” cause it ” was the end of the world” etc.
From 2000 to 2010 the Vanguard Total Market fund VTSMX returned 1+% a year CAGR, which yeah wasn't much but it's something and it was actually good because you were buying at reduced prices all those years if your time frame was longer than those 10 years of course.
Also people tend to forget that this was the markets return!! There were plenty of blue chip type companies like UNH COST LIN UNP NEE etc that gave From 7% to 20% a year all along!
So don't just invest in the index if you're so worried!
Also another thing. Yes, from 2000 to 2010 VTSMX gave you a little over 1% a year return, but guess what??
If you had steadily added say $500 a month from 2000 to 2010 into VTSMX??
You ended up with a 24% CAGR!!!
So yes, you're best bet is to stay diversified, make the market at least 50% of your portfolio and sticking with solid companies and to CONTINUE BUYING all along!!
Easy!!
Keep the faith all!
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