Most Individual investors fail.
In fact 70 to 80 percent of mutual buy and holder fail. If
you are invested and the market is going up then you are making
money. If the market is going down and you are invested
then you are not only losing money but you are losing time. It
is really that simple.
Every time you lose money in a down market you lose valuable
time. This table shows how long these drops last and
the lifetime spent getting the money back.
Bear Market |
Duration |
% Decline |
Time
Needed
To Breakeven |
Sept. ’29 – June ‘32 |
33 months |
86.7 |
25.2 years |
July’33 – Mar. ‘35 |
20 months |
33.9 |
2.3 |
Mar.’37 – Mar. ‘38 |
12 months |
54.5 |
8.8 |
Nov. ’38 – Apr. ’42 |
41 months |
45.8 |
6.4 |
May ’46 – Mar. ‘48 |
22 months |
28.1 |
4.1 |
Aug. ’56 – Oct. ‘57 |
14 months |
21.6 |
2.1 |
Dec. ’61 – June ‘62 |
6 months |
28.0 |
1.8 |
Feb. ’66 – Oct. ‘66 |
8 months |
22.2 |
1.4 |
Nov. ’68 – May ‘70 |
18 months |
36.1 |
3.3 |
Jan. ’73 – Oct. ’74 |
21 months |
48.2 |
7.6 |
Nov. ’80 – Aug. ‘82 |
21 months |
27.1 |
2.1 |
Aug. ’87 – Dec. ‘87 |
4 months |
33.5 |
1.9 |
July ’90 – Oct. ‘90 |
3 months |
19.9 |
.6 |
July ’98 – Aug. ‘98 |
1.5
months |
19.3 |
.25 |
|
