|
Time
is the investment element that can never
be regained .
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
|
Jan.
'00 - Oct. '02 |
1.9
months |
46.3%
|
?
|
|
