One or two years in a row of negative returns on the DJIA (Dow Jones) are rare but do occur.
1906 and 1907
1913 and 1914
1916 and 1917
1929, 1930, 1931 and 1932
1939, 1940 and 1941
1973 and 1974
2001 and 2002
2008 was only one year, 2009 did not end negative
These negative years were followed by very high, usually well above the average returns, for at least one year and sometimes many years. The market does not stand alone but over long stretches is based on "expected" economic growth and company's "expected" earnings growth.
Do not be confused by growth projections in different countries. It is the match between real growth and expected growth that makes the real difference. High expected growth could be difficult to achieve in reality and not be reflected in the markets.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.