Stocks Are Still King
Take a look at three graphs of the NASDAQ and DJIA which show their performance over the previous 1, 5, and 10 years.
(Dow had 35% Loss)
5yr
(Dow had 4.5% Annualized Loss)
10yr
(Dow had 1.4% Annualized Loss)
The performance of the stock market over the last 10 years has been awful. However, there is no reason to adjust your investment plans or think that the stock market will continue this dismal performance. Maintain focus on the long term and don’t let the static along the way cause you to deviate from the proper asset allocation. If you are in your twenties and thirties, continue to invest the majority of your money in equities. Do not be tempted to move all of your money into lower risk investments such as bonds, money markets, or savings accounts. This would be a major mistake. Less risk will almost surely leave you with a smaller net worth come retirement.
Over the past eighty years, the US stock market has been the best long term investment for your money. Look at a graph of the DJIA performance over the last eighty years and you will see that over long investment horizons - you have nothing to be worried about.
