The S&P lost another 5.74% today. The Nasdaq lost 5.8% and the Dow lost 5.11%. Did you know that at no time in the history of the stock market has a 10-year period been negative? That is, until now. For the first time ever in America, had you invested money in the stock market (i.e, the S&P 500), ten years ago, you would have less money today. 4.64% less to be exact. If you account for inflation at, say, 2.5%/year you’d have lost an additional 28%. So, in real dollar terms, you’d have lost more than 32%, or almost one-third of your money. You really would have been better-off with your money in your mattress for the last decade (unless your mattress burned).
Before this recent 10-year span, the worst the market has ever done is +7.8%, in 1972-1982. In other words, the worst decade before this one was almost 3 times better than this last decade. Check out “the chart”:http://finance.google.com/finance?chdnp=0&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=1&chdet=1223411475411&chddm=1004061&q=INDEXSP:.INX&ntsp=0 and step back a year at at time to see for yourself.
It’s yet another reason why George W. Bush will go down as the worst President ever. One could argue that the President has nothing to do with the economy, but if Presidents take credit when it does well, they have to take credit when it doesn’t.
Let’s get a Democrat in the White House, because the economy is always better under a Democrat than a Republican.