Lets face it friends, this is a painful time indeed. I started trading in April 2000 when I opened my self-select ISA (if I was superstitious I could say it was MY fault that it crashed after I got in!!!). So really, I have slid down the slope without any of the preceeding accumulation of funds - doubly painful!
However, whilst this downtrend is extreme, it will not last. And in the long term, the best way of wealth accumulation is the markets. An interesting article from CBSmarketwatch.com is included, saying that from the rules of compound interest of 10%, the Dow would hit 100 000 in 25 years. (Over last few decades it has been 13%, so this is not outlandish). So when we look back at the indices charts in 25 years time, hopefully on a beach somewhere, we will see the retracement of 2000 - 2001, remarking with a little chuckle, "I remember that well, tough times. But the lessons I learnt made the next 20 years very prosperous indeed!"
OK, so I am an optimist. However, the macroeconomics make a true crash (like in 1920's) unlikely, so this will not go on forever. Then, as Riz says, the time to go in for the kill will be upon us.
Keep heads up,
Mark
However, whilst this downtrend is extreme, it will not last. And in the long term, the best way of wealth accumulation is the markets. An interesting article from CBSmarketwatch.com is included, saying that from the rules of compound interest of 10%, the Dow would hit 100 000 in 25 years. (Over last few decades it has been 13%, so this is not outlandish). So when we look back at the indices charts in 25 years time, hopefully on a beach somewhere, we will see the retracement of 2000 - 2001, remarking with a little chuckle, "I remember that well, tough times. But the lessons I learnt made the next 20 years very prosperous indeed!"
OK, so I am an optimist. However, the macroeconomics make a true crash (like in 1920's) unlikely, so this will not go on forever. Then, as Riz says, the time to go in for the kill will be upon us.
Keep heads up,
Mark