GettyThere’s a dangerous myth going around: that stocks are in a bubble, and if you buy now, you’ll lose money. This myth is dangerous because it is discouraging people from putting money in one of the most powerful wealth-generating machines on earth. The global financial crisis triggered the third-worst year, in 2008, when stocks fell 38.5%. Fact #3: Since 1928, even including the Great Depression, 1970s stagflation, the dot-com bubble bursting, and the global financial crisis, stocks have returned 7.6% annually, on average. Because the global financial crisis ended exactly a decade ago, choosing a 10-year time horizon right now will give you an unusually high data point that isn’t an accurate reflection of reality.

Source: Forbes February 04, 2020 20:37 UTC