Reply to DOW futures down more than 1000 pts for Tues opening

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OMG, I have to get off this forum and back to bogleheads.  The ignorance is spectacular. 1987? Sell and buy back high?  [/quote]

Problem is that we have a *ton* of Millennials and GenX here who have never seen a real bear market.  Basically stocks took off in the 80s, and had a few very serious drops and corrections followed almost immediately by a blazing fast recovery (usually thanks to extraordinary measures taken by Fed or TARP or such).  Look at the trough of Mar 2009 -- within 1 year market had already recovered to the booming market values of 2005 -- every recovery has been 'V' shaped.

If we ever hit a 'L' shaped true bear market, this will be a new experience for two generations of investors, and despair will reign.[/quote]

I don't know, I think until very recently we Gen Xers were pretty used to stagnant long-term returns.  Inflation adjusted, over 15 years from 1998 to 2013, the S&P grew by an annualized 0.2%.  (cite: https://dqydj.com/sp-500-return-calculator/).  That's pretty awful for 15 years right in Gen Xers wheel-house.

Obviously, the 5 years since 2013 have been amazing, but I mean I lived through 1998-2013 treading water and going nowhere for 15 years before that.  That was like the first 15 years that I was seriously investing (I'm late 40s now).  So, I think I get the pessimism that such long-term stagnation can cause.[/quote]

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