Wasted decade?

Question

http://news.yahoo.com/s/ft/20080708/bs_ft/fto070820081507048999;_ylt=ArU8ShJI2WWPPZRzEmAVe5sT5LIF

"It's official: US stocks have had a wasted decade. The real return on the S&P 500 since 1998, after subtracting consumer price inflation, is just below zero. The last time this was true, according to Merrill Lynch, was in 1983."

what do you think?

Answer 1

When my 401(k) was loosing more money than I was able to contribute, I'd have to agree.

Answer 2

Look at who the President is.

Answer 3

So you think president Bush single-handidly ruined the economy?  That's mindless drivel that you're perpetuating.  Remember, when push comes to shove, it's Congress that has the power and not the President.

No the reason the economy is slumping is that we just came out of a boom during the 90s and we're just seeing the natural ebb and flow of the economy.

Answer 4

I agree, there always have been 10 - 20 year periods of stagnation. People forget so quick.

After inflation, the Dow increases 1,8% since its introduction in 1895. If its goes up more, it goes in following years down more.

Where the myth, that stocks are on average a good investment comes from, are the mutual fund managers.

The Dow is worth about 7500 if that, the rest is total hype, similar like real estate, where prices are still in the stratosphere. Real estate doesn't increase at all long term (Other then some local hot spots) it just keeps up with inflation.

If you invested in Coca Cola in 1901, you would be rich by now, but who knew that in 1901. Many people lost all they had investing in "secure, safe" companies at the same time.

Look at GM today, or take Google, hwo do you know, if goggle is worth anything in 3 years from now.