Retirement Digest: Investing in Market Drawdowns

Retirement Digest: Investing in Market Drawdowns

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.


Other Recommended Reading:


RFG Article from Last Week:

Thanks for reading!
Ashby


This post is not advice. Please see additional disclaimers.

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