Nick Maggiulli recently posted the best article I’ve read on the topic of being a buyer during this stock market drawdown as he reframes where we’re at today and what this could mean over the next few years. Here is a quote I wanted to share:

So, if you think the market recovery will take:
* 1 year, then your expected annual return = 50%
* 2 years, then your expected annual return = 22%
* 3 years, then your expected annual return = 14%
* 4 years, then your expected annual return = 11%
* 5 years, then your expected annual return = 8%

…

Even if we assume it takes 5 years to recover, that would be 8% returns over the next half decade.  Where else can you get 8% right now? 

Nowhere.

If you read any post in this Retirement Digest, make it this one.

• Buying During a Crisis from Nick Maggiulli

Other Recommended Reading:

• The Answers You Don’t Want to Hear from Justin Castelli
• Returns from the Bottom of a Bear Market from Ben Carlson
• When is the Right Time to Buy Stocks? from Michael Batnick

RFG Article from Last Week:

• 5 Actions You Can Take During a Bear Market

Thanks for reading!
Ashby

This post is not advice. Please see additional disclaimers.