I’ve posted Entry #122 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Two Growth Paths for Your Stock Portfolio Over the Next 30 Years.
Juicy Excerpt: Suffering a 65 percent hit to your stock portfolio will haunt you for the remainder of your investing lifetime. You will never recover from that hit.
Those are hard words. But I think they are justified by the graphic. I understand that few will take the idea that a 65 percent price drop can be foreseen seriously. Each investor has to make his or her own decision about that sort of thing. But I would feel that I had not done my job if I did not at least make an effort to demonstrate to you how long-lasting the pain will be that you will incur if I am right that a 65 percent price drop is coming and if you do not nothing to prepare for it.