The following has taken place in the past 30 years:
1995-2000: Dot-Com Bubble
1997: Asian financial crisis
1998: Russian Standard and LTCM in -order
2000-2002: DOT -COM BUST (S&P -50% and Nasdaq -83%), 9/11, Enron/WorldCom -Scandals
2003: Iraq war
2007-2009: major financial crisis, house prices collapse 26%, the US stock market drops 56%, Bernie Madoff Ponzi scheme from
2009-2012: European debt crisis
2013: Taps Driftbui
2016: Brexit
2018-2019: US-China Trade War
2020: global pandemic, oil prices are becoming negative
2021-2022: Supply Chain Shock, Russia-Ukraine War, 9% Inflation, Spike rates
2025: Liberation Day
This list can continue. There are many other things I have happened that I missed.
Despite all this, the S&P 500 returned 10.4% per year:
The 1960s, 1970s and 1980s were not a picnic either. Nevertheless, the previous 30 years saw an annual return of 10.6% per year.
Many really bad things happened in the 1930s and 1940s. That is two of the worst decades in modern history. The stock market rose by more than 12% per year in the 30 years of the summer from 1935 to the summer of 1965.
Many bad things will happen again. I can guarantee it.
I don’t know when and I don’t know why, but there will be crashes, recessions, financial crises, war, geopolitical unrest and more.
And I still invest in the stock market.
Why?
Bad things happen and life goes on.
People wake up every day to improve their place in life.
Companies are constantly looking for ways to earn more money.
The stock market is the only place where everyone can invest in human ingenuity.
I take that bet even if there are certainly setbacks on the way.
Continue reading:
31 years of return on the stock exchange
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