The Lost Decade

December 20, 2008 at 2:00 am 1 comment

This year shapes out to be one of the worst years in stock market history.  For the last 10 years, the market declined(!) by about 15%, also nearly matching the worst 10 year period around the Great Depression.  That’s our Lost Decade.  With statistics like this, it is hard to continue viewing stock market as a wealth generation vehicle.  This article from Charles Schwab presents some historical perspectives on secular market moves, and argues that significant rebounds follow wipeouts such as the one we are now experiencing. While no one can call the bottom and more down moves are certainly possible, the foundation for the next bull market is being created right now.

Entry filed under: Market Conditions.

Market Volatility Chart Hedge Fund Liquidations

1 Comment Add your own

  • 1. The Age of Safety « Sensible Investing  |  September 5, 2012 at 10:56 pm

    […] is this the “new normal”?  Has the lost decade permanently changed investor psychology to seek safer havens?  I think that this will be the case […]

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Blog Author

Leon Shirman's long-term investment philosophy is summarized in his book, “42 Rules for Sensible Investing”, also available from Amazon.


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