I’ve posted Entry #99 to my weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s titled Once Stock Prices Drop Hard, There’s Only One Way They Can Go.
Juicy Excerpt: We need to train ourselves to tune the market’s short-term message and focus in on the helpful, enriching, long-term stuff. I think that the best way to do that is by looking at the numbers.
Say that stocks are priced as they were priced in 1982. What will a $100,000 stock portfolio be worth in 30 years? Let’s compare that to what a $100,000 stock portfolio will be worth in 30 years if stocks are priced as they were in 2000. Let’s assume a 70 percent fixed (Buy-and-Hold) allocation in both cases.