RT Journal Article SR Electronic T1 Can Recent Long-Term Investors Recover from Their
2000–2009 Stock Losses? JF The Journal of Investing FD Institutional Investor Journals SP 9 OP 14 DO 10.3905/joi.2011.20.2.009 VO 20 IS 2 A1 Charles P. Jones YR 2011 UL https://pm-research.com/content/20/2/9.abstract AB This article examines the impact of the “Lost Decade”of stock returns (2000–2009) on the projected performance of recent long-term stock investors. While that decade impacted everyone who remained invested during those years, it is particularly devastating to the future performance of investors who began investing in stocks around 2000 and plan to remain invested for periods lasting up to another 30 years. Recovery from the “Lost Decade” depends not only upon both future market returns and the investment horizon, but also upon how an investor defines recovery. While recovery to a rate of return most investors seem to expect from stocks is possible, an examination of the likely probabilities of future rates of return indicate that the chances are small in most cases. As always, luck plays a role, and a limited analysis of differing starting dates reveals how final wealth can be affected by small temporal changes.TOPICS: Long-term/retirement investing, financial crises and financial market history