The Next Decade Could Be Rough

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“It’s not that we have little time, but more that we waste a good deal of it.” - Seneca

Excuse the picture, I couldn’t find one I liked so you get to enjoy my custom artwork (taking NFT bids now).

The S&P 500 is the poster child of the stock market. It’s the golden benchmark that most financial institutions use to gauge their returns and determine just how bad they are at picking individual stocks…I’m kidding.

No one can deny that the S&P 500 has been on an absolute tear the last 10 years.

This hot streak is the reason behind your dad bragging about his 401k and probably why the local country club has seen a spike in retires.

For us young bucks though, we have a ways to go before we are teeing off from the senior citizen tee box.

With such a strong performance over the last ten years, many are beginning to question what kind of returns might be coming over the next decade.

If you are a young investor, similar to myself, you haven’t experienced a time when the S&P 500 was negative or flat for an extended period.

Let’s take a look at the history of the S&P 500 returns and maybe we can get an idea of what is to come.

1989 - 1999

The S&P 500 returned 15.4% annually over this decade.

1999 - 2009

Hide your eyes…the S&P 500 got into a little slump returning an average of -4.4% annually.

2009 - 2021

Finally, the golden years that we are all familiar with saw the S&P return 13.4% annually.

Yes, I added 2 extra years to this timeline but you get the point.

What can we learn from this?

The next ten years are going to burn your portfolio to the ground. *Jim Cramer’s voice*

Seriously, the market goes through cycles. While 2/3 of previous decades have seen positive returns, it’s seems we might be due up for a slow down.

After all, the last three years have seen returns of 31%, 18%, and 27%.

Where one is currently at in their investing career likely influences how they look at this data. Someone in their 20’s probably didn’t even get to the end of this email, while another person about to retire is hoping today marks the bottom of this pullback.

Conclusion

While I’m not in the business of timing dips, I think it’s valuable to stay in tune with trends.

Either way, I plan to continue dollar-cost averaging no matter if the market is up or down. By doing this you ensure an average price, and don’t risk missing the best days in the market.

Till next time, Cade.

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Tweet Hunter - Automate your Twitter and build an account that will pay you $100 a week.

Personal Capital - Track all of your investments in one place.

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you soon!