Here I go again, talking about the stock market. It still seems like no matter what I write or say, many of you continue to worry about your investments. I could jump up and down like a monkey and it’s not enough. LOL Ok. Here’s the deal. I am going to make this article so short, and so sweet. Let’s look at what the stock market has returned each year since 1942. We, as a people, need to stop paying attention to our investments and look at what they have done for nearly 80 years. It is time to fight back against all the fear we are fed. Here is each year and each year’s stock market return. Please really take the time and read each year and market return. Year S&P 500 1942 19.17% 1943 25.06% 1944 19.03% 1945 35.82% 1946 -8.43% 1947 5.20% 1948 5.70% 1949 18.30% 1950 30.81% 1951 23.68% 1952 18.15% 1953 -1.21% 1954 52.56% 1955 32.60% 1956 7.44% 1957 -10.46% 1958 43.72% 1959 12.06% 1960 0.34% 1961 26.64% 1962 -8.81% 1963 22.61% 1964 16.42% 1965 12.40% 1966 -9.97% 1967 23.80% 1968 10.81% 1969 -8.24% 1970 3.56% 1971 14.22% 1972 18.76% 1973 -14.31% 1974 -25.90% 1975 37.00% 1976 23.83% 1977 -6.98% 1978 6.51% 1979 18.52% 1980 31.74% 1981 -4.70% 1982 20.42% 1983 22.34% 1984 6.15% 1985 31.24% 1986 18.49% 1987 5.81% 1988 16.54% 1989 31.48% 1990 -3.06% 1991 30.23% 1992 7.49% 1993 9.97% 1994 1.33% 1995 37.20% 1996 22.68% 1997 33.10% 1998 28.34% 1999 20.89% 2000 -9.03% 2001 -11.85% 2002 -21.97% 2003 28.36% 2004 10.74% 2005 4.83% 2006 15.61% 2007 5.48% 2008 -36.55% 2009 25.94% 2010 14.82% 2011 2.10% 2012 15.89% 2013 32.15% 2014 13.52% 2015 1.38% 2016 11.77% 2017 21.61% 2018 -4.23% 2019 31.21% 2020 18.01% Dave’s Comments: 1. If you started investing in 1942 you would have made money EVERY YEAR until 1973. That’s 31 years. Sure you lost single-digit amounts in 1946,1957,1962,1966 and 1969, but who cares? You would have made far more than 10% on average. You would have lost a small amount of money five out of thirty years. Nobody “lost all of their money.” That is a total misconception which 95% of the population possesses. 3. The markets did nothing by grow at an astonishing rate from 1976 to 2001. Markets are never “due” to crash. 4. Yes. You would have lost double digits five times out of eighty years. But even those times are mostly in the teens. Nobody came anywhere close to “losing all their money.” 5. Look at some of those good years. 37% in 1975, 32% in 1980, 30% in 1989, 30% in 1991, 37% in 1995, 32% in 2013, 31% in 2019, and 52% in 1954?! I really want you to let all of this sink in. Ponder on these numbers. Print this out and put it on your refrigerator. There are dozens of things people should be worried about instead of the stock market. Don’t let all the frenzied talk around you affect your mental health. What you are doing works. Dave’s Plea: Please believe that the stock market will average 10% between now and the end of your life. If it doesn’t- it is historically unheard of. Don’t make me rent a gorilla suit and jump up and down. Be Blessed, Dave |
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