When We Hit Bottom May Not Matter As Much As Some Think

I recently posted a Letter to the Editor to the Early Retirement Planning Insights site. it’s called When We Hit Bottom May Not Matter As Much As Some Think.

Juicy Excerpt: The best time to get back heavily into stocks was 1975, not 1982. There were some drops in valuations from 1975 through 1982. But the stock market offers an average annualized return of roughly 6.5 percent real in times when the P/E10 level remains stable. Small drops in valuations do not bring the return enough below that to make it a good idea to be out of stocks. The full reality is that stocks offered strong returns all the way from 1975 through 2000.