%0 Journal Article %E Edward F McQuarrie %T The Stock Market’s Little Shop of Horrors: And You Thought the Aftermath of 1929 Was Grim %D 2009 %R 10.3905/JOI.2009.18.2.006 %J The Journal of Investing %P 6-12 %V 18 %N 2 %X Do stocks always beat bonds? Do stocks necessarily beat inflation by 6%–7% over long periods? Data from select foreign markets and pre-1926 U.S. markets call these shibboleths into question. Better to regard stocks as always a risky investment, independent of holding period, and regardless of immediate prior returns. Thus, buying after stocks have declined by 40% is no panacea. And, severe declines in excess of 40% are more common than with conventional asset allocation models, as the halcyon decades following the Depression might suggest.TOPICS: Portfolio management/multi-asset allocation, performance measurement, volatility measures %U https://joi.pm-research.com/content/iijinvest/18/2/6.full.pdf