What If the Stock Market Never Recovers?

No recovery

Sadly, I have come to the same conclusion as the no recovery scenario. I believe that any recovery at all will be modest at best, and stock returns may likely be anemic by historic standards, maybe for a decade or more. I have no confidence in the equity markets as a safe arena for the individual investor. I am approximately 7 years from retirement. I went to cash after the Bear Stearns meltdown, and I remain in cash. I am interested primarily in preserving my capital, and although I continue to direct nearly 17% of my gross earnings to my 401(k) account, it all goes into the cash fund. That 4% return is better than watching your hard earned dollars going down the toilet. I just have no confidence in the market.

KB of UT @ Apr 27, 2009 16:52:31 PM

Stock Market Recovery

Frank of TX suggests a scenario that the stock market crashes, riots begin, and a new age of fascism. Who can say, but we do know that with the exception of riots, we've already experienced that with 8 years of Bush.

Chris Doyle of ID @ Apr 26, 2009 13:28:33 PM

To answer Emily Brandon

You forget to factor in inflation. All fiat currency has it. Now that the federal reserve printing presses are about to put into full production to cover the "presidents" plans for our economy. You have to assume that with no buyers of the debt it will be monetized and therfore create Hyper-inflation.

Can anyone say Weimer Republic Marks?

Jeff of WI @ Apr 26, 2009 04:19:05 AM

One More Scenario forgot something!

First there has to be some type of crisis happen that travel may be restricted. Whether it is a financial, health or biological scare or some type of "incident" that a declaration of emergency may be declared. That way the emergency powers assumed by the president or governing body have a cover of legitimacy.

Jeff of WI @ Apr 26, 2009 04:14:45 AM

why risk it - get out

I think that Americans have pinned way too much hope on the idea that the stock market will come back. I'm not sure it's a risk any of us can or want to take. By owning hard assets, like real estate and precious metals, at least, at the end of the day, you own something. And with real estate, you can cash flow a good investment forever.

Jennifer of CO @ Apr 25, 2009 14:52:28 PM

Only thing to recover the market...

Am i right in thinking that following the previous depression followed by a War the market has recovered pretty successfully....so guess whats coming...

This whole thing has been a setup from the beginning...

gaz @ Apr 24, 2009 21:28:45 PM