Are we facing a lost decade of flat stock market returns?

News predicting a lost decade

Recently some investors have asked me my opinion on doomsday predictions that we’re facing an upcoming “lost decade” of flat stock market returns. Actually, they asked me about those doomsday predictions last year too. And the year before that too! In fact, I’m quite sure there isn’t a day in the last 100 years where there wasn’t an expert predicting upcoming economic disaster.

Yet over those last 100 years, the market has marched upwards with an annual compound growth rate of 10.6%. That means if you invested $1,000 back in 1922, today it would be worth $23,845,801 today.

So what do I think about the doomsday predictions THIS TIME? I think they’re nonsense. I obviously don’t know what the future holds, but I certainly know what I’m gonna do. I’m going keep buying and holding and ignoring the click bait headlines of doomsday predictors. They’ll be right every once in a while for a year or two, then the market will rebound and keep marching back up.

The market is four steps forward, one step back. Don’t bother yourself with trying to predict when the one step back will occur. You’re much more likely to miss the four steps forward. Spend less than you make. Invest the difference. Ignore the stock market headlines.

As always, reminding you to build wealth by following the two PFC rules: 1.) Don’t invade sovereign democratic nations and 2.) Don’t succumb to hateful propaganda.


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