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?”
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.