If you were one of the people who “gave up” and sold stocks in the gloom of last winter, you may be feeling a little foolish these days.
But the real question is: What will you do during the next decline?
There will be another decline, of course.
But if you’re planning to retire in America, you’ll be much better off investing in America.
Remember, going back to 1926, there’s never been a 20-year period where you would have lost money in a diversified portfolio of large company stocks, with dividends reinvested. Even adjusted for inflation.
Sure the economy appears gloomy, with bankruptcies and foreclosures and unemployment all rising. But we’ve gotten through tough times before. It’s just that most people under 50 have no memory of the 1981-82 recession, when inflation was 13 percent, unemployment hit 12 percent, and the prime rate hit 21-1/2 percent!
Back then the DJIA was trading around 800 – and no one was predicting a technology boom that would take the Dow to nearly 15,000 in the next twenty years. If you sold out back then, in the midst of that steep recession, just think of the gains you would have missed.
So start planning, saving, and investing for retirement. No one ever got rich betting against America! And that’s The Savage Truth.