[Alberta's Child]

I'm referring specifically to the impacts of a major correction in the stock market. Decisions by individual companies will drive financial performance, but are more likely to be driven by company sales and costs rather than stick performance. The only people who lost money in the 2008 stock market crash were those who sold out at the time.

If you invested $1,000 in an S&P 500 index fund at the end of 2004, it would have been worth about $745 at the end of 2008. But you only would have lost $255 on the investment if you actually sold your shares at the end of 2008. If you left your money invested, you would have recovered back to your initial $1,000 investment sometime in 2010 ... and by the end of 2014 your $1,000 investment would have been worth almost $1,700.

And even after the massive sell-off over the last week, your investment would still be worth more than $1,900 right NOW.

[Hardens Hollow]

You are assuming that all crashes will bounce back at the same rate. Since I think the last recovery was really a bubble, at some point there will not be a bounce back. If you look at the stock market after the depression, it was slow going.