This article is idiotic. If you invested at the top of the market in 1929 and remained invested during the 86% drop, it would have taken 13 years of growth at 16% per year to get back the money you invested in 1929. That also assumes that you had an index and were not invested in companies that went bust. Don't ride the market down!
The Big Scary Myth Stalking the Stock Market
Are you worried that investing in today's technology-focused stock market is dangerous?Imagine a time machine, like Doc Brown's DeLorean in "Back to the Future, " that could transport us to the best possible times in history to invest. I don't know about you, but I would set the destination circuits to June 1, 1932. On that date, the S&P 500 had fallen 86.2% from its peak price in 1929.That way, I could earn some of the highest annualized long-term total returns ever recorded: roughly 12.3%, 15.1% and 16.1% over the ensuing 10, 20 and 25 years, respectively. A 16.1% annualized return over 25 years would turn $100,000 into nearly $4.2 million.I wouldn't thank Doc Brown's flux capacitor for my millions. Instead, I'd thank what many financial advisers and asset managers call a "dangerously overconcentrated" stock market.In the 1990s, brokers called index funds "tax bombs" that would supposedly hit investors with huge, unexpected tax bills. Then came warnings that index funds couldn't pro
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