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1) After a crazy growth in stocks in past ten years what are the chances of a lost decade in S&P500? If this happens, will other country index like china also suffer similar fate?
2) for such lost decades, would holding on to dividend stocks be the way to continue earning something from your portfolio?
3) how will you invest differently if u know that a lost decade has begun and it will continue to happen for a decade?
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Samuel Wong
26 Apr 2021
Banking & Finance at Singapore Polytechnic
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Throughout the past decade we've had multiple corrections and bear markets.
Some will say we haven't had a bear market since the financial crisis but yet many define a bear market as a drop of 20% or more. That has happened several times since then.
There are always people calling for disaster and US default. But remember the US market has gone through multiple disasters, panics, wars, doom and glooms. Note above this isn't the first time. We've had people call it a "lost decade" 20 years ago. However, if you and I stayed invested and consistenly buying at the discounts the markets were giving us, we would have seen massive returns today
Nobody can predict the future.
It is anybody's guess whether from next week onwards we could enter into a 10 year bear market, go sideways for 4 years or just go up for 15 years straight.
That is the beauty of the market
Uncertainty is the only constant in the market and that what makes it work. If you are certain it's gonna go up, all you have to do is borrow as much money as you can and leverage x99999 and you will be a billionaire in no time.
What it means for us
Your investment strategy should be unchanging irregardless what happens. I think we are seeing a surge of new investors and people are jumping in from FOMO. "Rise in prices creates rise in prices" - Warren Buffett.
However, a true intelligent and long term investor that can create sustainable wealth in the markets is one that is true to their belief's, strategy and philosophy in investing.
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Tan Choong Hwee
22 Apr 2021
Investor/Trader at Home
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Nobody knows. In investing it's about probabilities not certainty. If you're scared that there's going to be a lost decade and decide not to invest, it's certain that your cash will not grow. On the other hand, if you do invest, there's a probability that your money will grow