We’ve all heard pundits refer to the first ten years of the new millennium as the “lost decade.” Folks who invested in a stock-index fund such as the DIAMONDS Trust Series ETF (DIA) at the beginning of 2000 and held it through December 31, 2010 saw a gross return of around zero. Factor in inflation and the real return drops to around minus 3% per year. In other words, cash was king and it would have been better to keep your money in bonds or in the bank.
Some experts, including Martin Pring author of a new book entitled Investing in the Second Lost Decade (McGraw Hill, 2012), believe that with high levels of debt, persistent high unemployment rates and economic turmoil around the globe, that there is a good chance that we will see another lost decade into the 2020s. Suffice it to say that this is not the kind of trading environment that gets a bull (like me) who eagerly awaits the next big rally, very excited.
So what are safety-conscious traders and active investors who...
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