Monday, May 4, 2009

A Review of Past Bull and Bear Markets Since 1950

The chart above shows the trendline that so many financial planners use to highlight the performance of the stock market. The chart is used to sell the buy and hold investment philosophy. Financial planners don't tell you about the stocks that go bust and the new healthy stocks that come into the index. When AIG tanked the stock was replaced by Kraft Foods. What about Enron, WorldCom, and Wachovia?

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