How has it worked out for people who have
stayed out of the stock market from 2009 to 2017?
He currently is
staying out of the stock market because he believes that there is too much uncertainty, especially in the political arena.
Some investors are committed to
staying out of the stock market until at least a 10 % correction.
But those who
stay out of the stock market on principle are probably doing themselves a disservice, says Avani Ramnani, a financial planner and the director of financial planning and wealth management at Francis Financial.
Not exact matches
If you
stayed the course during that time, things worked
out pretty well, because you bought at the low point
of the
stock market, and you contributed more and can you imagine that tax lot that you invested in, in March 2009, where that is right now.
As I've noted before, for an investor looking to capture all the
market's long - term returns with substantially less downside risk, it would actually have been enough, historically, to simply step
out of the
market on a price / peak multiple
of 19 and then wait for a 30 % plunge before repurchasing
stocks, even if that meant
staying out of the
market for years in the interim.
Note on the graph above that we
stayed out of trouble during the big
stock market collapse from 2007 to 2009.
While there may be some legitimate excuses why some people don't start investing in the
stock market earlier in their lives, that generally should not become an excuse for
staying out of the
market altogether.
If you only buy
stocks that pay dividends, you'll automatically
stay out of almost all the
market's worst
stocks.
So if you only buy bank
stocks that pay dividends, you'll automatically
stay out of almost all the
market's worst banks.
Our view is that if you like the outlook for a
market index, you should invest in
stocks that will profit from a rise in that index — and at the same time, if you think an index will fall,
stay out of stocks.
7 ways to identify the high dividend blue chip
stocks that will help you lessen the risk — and boost the returns —
of your portfolio If you only buy the best high dividend blue chip
stocks, you'll automatically
stay out of almost all the
market's worst
stocks.
I'm going to go the contrarian route and suggest you
stay completely
out of the
stock market for the foreseeable future.
Aside from using the holidays as an excuse to reach
out to your client base with cards and gifts to
stay top -
of - mind, the winter downtime is perfect for taking
stock of your
marketing techniques and assessing what you can do differently for your overall business.