Being smart with $$ - I Love Lucy and Stocks

Do stocks scare you? If you plan to own them for only a year they should.  You could have a year like 2008 and lose 36%.  But if you plan to hold them for the long term, your worries should fade.  Going back to 1950, the worst 10 year performance is an annualized loss of 1.4%.  Not great but that’s the worst.  And if you never sold in less than 15 years, the worst you did going back to just before “I Love Lucy” was a positive annualized 4.2%. Stocks have returned about 9% since the late 20s.  Short term? Risky. Long term? I Love Lucy AND Stocks.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com
- Blog: www.clientpriority.blogspot.com