Prior to now 30 years the next has occurred:
1995-2000: Dot-com bubble
1997: Asian monetary disaster
1998: Russian default and LTCM collapse
2000-2002: Dot-com bust (S&P -50% and Nasdaq -83%), 9/11, Enron/WorldCom scandals
2003: Iraq Battle
2007-2009: Nice Monetary Disaster, housing costs collapse 26%, U.S. inventory market falls 56%, Bernie Madoff Ponzi Scheme outed
2009-2012: European Debt Disaster
2013: Taper Tantrum
2016: Brexit
2018-2019: U.S.-China Commerce Battle
2020: World pandemic, oil costs go destructive
2021-2022: Provide chain shock, Russia-Ukraine battle, 9% inflation, charges spike
2025: Liberation Day
This checklist may go on and on. There’s loads of different stuff that occurred that I missed.
Regardless of all of this, the S&P 500 returned 10.4% per yr:
The Nineteen Sixties, Seventies and Nineteen Eighties had been no picnic both. But the earlier 30 years noticed annual returns of 10.6% per yr.
A variety of actually unhealthy stuff occurred within the Nineteen Thirties and Nineteen Forties. That’s two of the worst a long time in trendy historical past. The inventory market was up greater than 12% per yr within the 30 years from the summer season of 1935 via the summer season of 1965.
A variety of unhealthy stuff will occur once more. I can assure it.
I don’t know when and I don’t know why however there can be crashes, recessions, monetary crises, battle, geopolitical upheaval, and extra.
And I nonetheless spend money on the inventory market.
Why?
Dangerous issues occur and life goes on.
Folks get up every single day seeking to higher their place in life.
Companies are continually in search of methods to earn more money.
The inventory market is the one place the place anybody can spend money on human ingenuity.
I’ll take that wager even when there’ll certainly be setbacks alongside the best way.
Additional Studying:
31 Years of Inventory Market Returns
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