Painful truths about stock market investing; how to avoid them.

1. After the 1929 crash, it took the market 14 years to break even.
2. The 2008 market crash wiped out 12 years’ worth of gains.
3. After taxation and inflation, bonds have negative returns most of the time. Yet, from 1969 to 2009 (40 yrs.), government bonds outperformed the stock market. Outperformed only by 0.6% but still, outperformed.
4. From 1969 to 1981  (12 yrs.), the market returned 105%. During those 12 yrs., the inflation rate was 150% which means that stock market investors got a negative 55% return!
5. Gold annual return rate since 1926 stands at 0%.  Yet, for the nine years from 2000 to 2009, the stock market fell by 9% and gold went up by 180%!
6. Since 1928, cash has outperformed the US market in one-third of all the years.
7. The stock market has had a negative return in one out of every four years. Cash has never had a down year.
8. Once a decade, the stock market has been down over by 30%.
9. Based on history, over the next five decades, there will be seven to ten recessions.
10. Japanese stock market is in its third lost decade. It is trading at just over 1/2 of its peak in December of 1989.

Yet investors can profit in that environment. How?

Practice the six habits promoted by the Monday Morning Program.