The six habits of highly effective investors and stock market secrets

Times are tough; the British economy is the worst in 300 years! (They keep records that far back.) The economy in the rest of the world is comparably bad.

But….

Any money that was in the market at the end of last March has done exceptionally well to-date. Largely because of that,  our last survey shows that nearly 85% of our members and subscribers are doing well or are doing better than ever! Better than ever!! And that, during this economy which is the worst ever!

The stock market has produced a 10% annual return on investment for over 100 years!

To get a balanced view of this phenomenon, we need to look at history.

  • Including dividends, it took the market 14 years to break even after the October 18,  1929 market crash.
  • The 2008 market crash wiped out 12 years’ worth of gains.
  • The Monday Morning program discourages buying bonds because, after taxation and inflation, they nearly always produce a negative return. However, from March 1969 to February 2009 – 40 years,  long-term government bonds outperformed the market. They did so by .06% only, but they outperformed.
  • From 1969 to 1981, the market returned 105%. Isn’t that wonderful? During the same period, inflation amounted to 160%, meaning that the market produced a negative 55% return after inflation!
  • From the year 2000 to 2009, the stock market fell by 9%. Gold went up by 180%!
  • Since 1928, cash has outperformed the US market in one-third of all the years.
  • The stock market has had a negative return in one out of every four years. Cash has never experienced a down year.
  • Once a decade, the stock market has been down over by 30%.

Once again, please note that the stock market has produced an average 10% annual return on investment for over 100 years!

So, how do we minimize market bads and maximize on markets that are good to great?

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me