It is true, the stock market always (eventually) moves higher throughout history.
BUT, after the fall of 1929 to 1930 it took 26 YEARS to better the old highs. For almost 20 years during 1960-1980 stocks basically went nowhere.
The CRASH of 1929, stocks ended up losing 90% of their values from the highs when that bear mkt ended.....and then it took another 26 years to recover new highs.
SPRING forward to today, the new world of financial engineering (thank you FED) THE DOW FELL better than 50% from 2007 to 2009 LOWS, but it has recouped MOST of those losses in jsut 3 years???
Most of stocks gains has come since 1980...as we enterred the Greenspan FED ERA. LOW LOW INTEREST RATES are DIRECTLY behind todays stock surge....the FED has laid down the gauntlet and left you with little else to find yield.
I have seen balanced, well diversified portfolios that have managed a 7% return over the last 10 years...outpacing the SPX.....with the help of an expert financial planner, you can somewhat rest easier at night....because HOW many of you can TIME the market?
For most people it is they are in.....until the market losses pile up and stress wins out, they eventually sell near the lows....some never come back settling for meager 1.5% returns on SAFE US TREASURIES....who can live off that?
Will baby boomers begin to sell stocks soon to fuel their retirement?
Stocks made new highs in 2007, so we could argue the BULL LONG TERM BULL that began in 1980 ended in 2007...longest running in history 27 years! or will wenow hit ANOTHER NEW HIGH?
The last BEAR MARKET lasted 16 years from 1966-1982.......there is NO WAY a 27 year BULL MKT or even an 18 yr bull mkt (if you use 2000 as top) is corrected in 2 years.