The short version is that we are still suffering the aftereffects of a bubble market. The repercussions of the bubble will take years, if not decades to sort out. The reason more "experts" aren't talking about this fact is because the business schools and economics courses don't talk much about previous bubble markets, so they don't have much knowlege of what leads to them or what happens afterwards. To be perfectly honest, I'm figuring that we are in for about a 10-15 year bear market. Sorry if this is a depressing concept, but I believe this is the truth. The Dow will probably end up around 3000 before this is all said and done. In fact, I'll pick some numbers right now.
Dow 3000, NASDAQ 750, S&P500 500. Within the next two years. This is, of course, predicted with my patented SWAG ("Scientific" Wild Assed Guess) method. Personally, I'm in cash and real estate right now. Stocks and bonds make me nervous.
Well, if we are in a 10-15 year bear market at least my kids will live long enough to see the market recover.
Your kids will live to see new bull markets. Their kids will live to see the next bubble. It seems to happen about every seventy years or so. There is a theory called the "Elliot wave" that talks about this.
"Well, if we are in a 10-15 year bear market at least my kids will live long enough to see the market recover. "
That's the way I like to look at it -- a GOLDEN opportunity for them. Like getting in on the stock market in 1932.
The trick then was surviving from 1929 to 1932 with capital intact.