The S&P 500 doesn’t lose often. It’s only seen 24 losing years from 1926 to 2014. Roughly one out of every four years ends in a loss. Too bad that doesn’t happen like clockwork.
The S&P has gone on a nine year stretch without a loss and its had periods of multiple losses in a row. In fact, half of the losses were involved in multi-year losing streaks.
The infrequency of losing years doesn’t make it easy on investors. It allows you to get comfortable, too comfortable sometimes, or comfortable enough to forget about what the last loss did to your psyche and your savings. Continue Reading…