Page 6 - Exposed Final

During the three-year period during 2000, 2001 and 2002, the market lost

42.9% of its value and it was four years later before it reached a break-

even point. In 2008, the stock market lost 36.63%, and it took four years to

reach the break-even point.

Now, because conventional wisdom touts the stock market goes up over

the long-term, this then justifies a 16-year period (2000-2015) in which the

stock market produced less than a 4.10% actual rate of return. Where else

would people tolerate 16 years of less than a 4.10% annual rate of return

and pay Wall Street (fees) for the privilege to do it?

Just think, a 35-year-old who “hung in there” for 16 years, just like Wall

Street says to do, is now 51 years old. And all he or she has to show for

listening to the Wall Street cheerleaders is a loss of principal or an account

value representing the money they contributed with little or no profit.

What if another 10 years pass in which no gains occur? Now our 51-year-

old is 61. Please don't be misled; youth is not the great elixir to mix with

poor stock market performance. I know many of you are thinking that the

chances are slim of another 10 years with no return (better known as a flat

market). Before you make that assumption, be sure to read Chapter 2.

Remember, John Bogle, warned investors to prepare for at least two stock
market declines of up to 50% over the next decade.