Senior Vice President, Client Service, St. Germain Investments I am writing this not only as a financial advisor and planner, but more importantly, as an investor who understands the frustration, concern, and uncertainty this historic slide in the market has created. I am writing this as someone who, like you, is nervous about the future, as someone who has questions whether stocks will ever stop losing value (let alone recover). Running the numbers Many sleepless nights over the past few months have prompted me to do some research and analysis of the markets' reactions to past recessions and economic slowdowns. My discoveries have reinforced my confidence. I did a lengthy analysis on market recoveries after some of the worst periods of stock market performance. The findings are encouraging because in all cases to date, investors have always recovered their money if they "stayed the course". In every case following the previous worst ten year periods in stocks, investors have made back at least what they lost over the next ten years (in fact in some case, it only took 5 years.) More than half the time, following the worst ten years, investors have doubled, tripled or even quadrupled their money! |