How Did Your Investments Do?

So, the question is if you invest, and I hope you do, how have you done since the recession began? In a blog post on Get Rich Slowly Robert Brokamp (from the Motley Fool) discusses this question. He points out that had you invested in a common index fund in 2007 and held on you would have about the same amount today as you did in 2007 – that is zero growth. 

What does this mean? It means that if you ascribe to the buy and hold model of investing you had little or no gain over the past six years as stocks built back up to where we left off in 2007. It also means that if you truly ascribe to buy and hold a six or seven year span is not significant. Holding for decades means riding the ups and downs but usually coming out with growth over the long haul. 

And now the big question, which Brokamp does not answer: what do you do now? If you listen to the various “advisers” in the media some say we are headed for a second major adjustment – which means a drop in stocks. The other half are bullish and say things are steadily getting better. Who to believe? 

Again, if you are a long term investor it does not matter much. You are in it for the long term and the ups and downs over something less than a decade do not matter so much as long as you make it up during the bullish period. In a few weeks we will a review by Ken Fisher’s new book where he advises just that – continue to buy in, hold on for the long haul and in the end it will pay off. 

Are Fisher and the other long haul advocates right? Tell us what you think?

Wishing you success and prosperity,

Daniel R. Murphy
Helping People Learn to Build Wealth

Wishing you Success and Prosperity,

Daniel R. Murphy

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.