Long-term investing is nonsense

This excellent chart by Seeking Alpha (click on the chart to enlarge it) proves a point a tried to make in all my talks in the past 30 years.

Long-term investing is nonsense.

It is true the market rises 6.75% per year. This, however, is the average growth over the past 70 year. If you look carefully, however, the chart shows that the time the market went nowhere is almost the same as the time it moved higher. The number of years when the market was flat is close to 15 years in each instance.

The point is that you have to "time" your investments. Your investment strategy must be in tune with the times.

Are we in a period like 1900-1920,1929-1950,1969-1982, or 1998-20xx when the market went nowhere? Or, are we in a period when market growth averaged more than 15% per year?

I know, no one said investing was easy.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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