Inflation is UP and stock market returns are DOWN... is this a sign of worse things to come? Have we seen something like this in the past? How has the stock market responded previously? Let's help YOU understand the best plan of action moving into an unpredictable future.
1946 8.5%
1947 14.4%
1948 7.7%
1946 -12.05%
1947 14.4%
1948 7.7%
Total return of 117.30%
Annualized return of 13.81% per year
$1,000,000 would have grown to $2,172,970
1979 11.3%
1980 13.5%
1981 10.3%
1979 17.12%
1980 26.02%
1981 -7.22%
and... a down 1981 followed up with a positive 30.11% in 1982
Not really. There is a chart shared in the video at the 1:52 mark that bares this out even more than the data above.
When investing in the stock market, most should be doing so with a long time horizon. NOT, trying to maximize returns in any one year.
1990 - 2021 (Inflation facts)
Highest inflationary years were:
1990 5.4%
2021 4.7%
1991 4.2%
2008 3.8%
Highest inflationary months saw:
7%
6.3%
5.6% (a few times)
Long term average inflation is 3.27%
77 of the 384 months over this time period had inflation higher than the average.
That is just over 20% of the time.
1990 - 2021 (Market facts)
Long-Term Government Bonds 7.8%
Long-Term Corporate Bonds 8%
S&P 500 Index 10.8%
CRSP 1-10 Index (Nearly all US Stocks) 10.9%
From 1970 to 2021 $1 would have grown to $98 dollars despite:
Inflation
The quadrupling of oil prices
The Dow dropping 23% on Black Monday
War
Hurricanes
Income tax rates rising
Y2K
Asian currency crisis
Russian financial crisis
9/11 terrorist attacks
Subprime mortgage crisis
Brexit
Covid-19 pandemic
A disciplined investor looks beyond the concerns of today to the long-term growth potential of markets.
Sources & Disclosures found in the video link on Youtube