Stock market investing myth exploded!

Do you believe it’s true that you have to risk your money in order to grow a sizable nest-egg?

If so, you’re not alone – that’s the conventional thinking we’ve long been brainwashed to believe. But a shocking new study reveals just how fundamentally flawed this belief is…

For the last 40 years, ordinary long-term treasury bonds have outpaced investing in the stock market! This is according to a just-released study in the Journal of Indexes (May/June 2009 issue) by Robert Arnott.

So, what does that mean?

It means that for the past four decades, the only “rewards” investors have received for taking the extra risk of stocks and equity mutual funds are sleepless nights and broken dreams of retirement”

Other revelations in the study include…

  • During the 20th century, there was a 77-year span with no price appreciation in U.S. stocks, after adjusting for inflation
  • Out of the past 207 years, stocks have spent 173 years – more than 80% of the time – either faltering from old highs or clawing back to recover past losses

The author notes that 80-90% of the offerings provided to employees in 401(k)s – which hold the majority of Americans’ retirement savings – are based on equities.

As a result, he asks, “is it any surprise that 80-90 percent of most people’s assets are invested in stocks? And is it any surprise that they now feel angry and misled?”

Arnott concludes…

As investors become increasingly aware that the conventional wisdom of modern investing is largely myth and urban legend, there will be growing demand for new ideas and more choices.”

Well, such a choice already exists. It’s called “Bank On Yourself,” and more than 100,000 Americans already use it. Not a single one of them lost a penny in their plans when the stock and real estate markets collapsed, and in fact, their plans have all continued growing safely and predictably.

You can get all the details by requesting my free Special Report and/or get a copy of my best-selling book.


  1. They Are Not The Same

    Savings is money converted as quickly as possible into wealth, such as precious metals, buildings, land, etc. Wealth is not subject to inflation.

    Risk capital is money employed in the stock market, with the goal to increase or maintain the purchasing power of money by speculating or investing. This is necessary because the purchasing power of money is constantly decreasing due to inflation.

    Risk capital and savings are not the same thing. This distinction of financial education is not commonly taught at home, in schools, by the employer, and especially by the wolves of Wall Street,as it should be.

    One is a means of survival, financing, and retirement, that gives one control over one’s life and finances, while the other is risked in the casino-like stock market, in order to make speculative gains or longer-term investments. Notice the name “risk” in risk capital. The risk is, if one doesn’t know what one is doing, one can lose control of one’s finances and life.

    If one does not know how to invest, then one should not be in the stock market pretending to know how to invest. The Bank On Yourself plan is more aligned to the goal the average “investor” thinks he or she is achieving by gambling in the stock market.

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