Let’s talk in 24 months. You have a whole lot more confidence than I right now. My only glaring example is the Japanese market which has still not recovered from the lost decade.
I’m to the point of cutting off the monthly investment that is supposed to accomplish dollar cost averaging. Not being able to see four or five years into the future with the same boobs in congress and the presidency, I’m not bullish.
It all depends on what you’re saving for. He doesnt need his money in 2 years doesnt sound like. He needs it in 10-15 years for college, etc...
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We’ve ALREADY lost a decades worth of growth, as the market hit an 11 year low yesterday.
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I understand your thoughts and fears and the yahoos we have in office doesnt really give me any warm fuzzies either. But did the market come back after the great depression? What would $100 back then be worth today, even including inflation?? We aren’t even CLOSE to great depression despite what the MSM says...Not even close....Check out ‘79-’82. Can you say 21% interest rates??? Kind of hard to borrow capital to create jobs when thats the case.
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Its a normal business cycle and I’d bet the farm that 5 years from now, your investment in good diversified growth stock funds will be worth more than it is today, including inflation. And i think it will probably be the same a year from now, but....
Good point.
It's worth noting, however, that the sun still rises and sets in Japan every day . . . and they still have one of the highest standards of living in the history of mankind over there.