Last Wednesday, The Wall Street Journal ran the following article titled “This Could Be a Lost Decade for Stocks.”
Its author, Spencer Jakob, suggests that if corporate profit margins and price/earnings ratios contract over the next ten years due to rising interest rates, it is quite possible the S&P 500 Index could end 2031 at its current levels.
Speaking of getting lost, it wasn’t that long ago that the S&P 500 Index endured a “lost decade,” with the 10-year period ending 2009 generating a negative cumulative loss over that time span.
In reflecting on that “lost decade,” all was not lost.
Long touted by The Coffeehouse Investor, other dimensions of the market, including large value, small value, international, and emerging markets, performed significantly better than domestic large-cap stocks of the S&P 500 Index.
There are many ways to prepare yourself for the possibility of a “lost decade” ahead.
Creating a Coffeehouse Investor portfolio is one.
Let's discuss how we can diversify your portfolio and more in a strategy session with me. You can't afford to wait.