Buy And Mold

Everyone knows that in the long run stocks always go up. Our brokers and the smart people on TV have fancy graphs they show us that prove that over the long term, stocks only go up. They tell us that yes, from time to time there will be this nasty thing called a bear market, but if you just hold on in the "long run" You'll be just fine.

Well, in real terms that long run is an awfully long time. What brokers like to show you is the nominal value on the S&P500 or the Dow. What none of them would be willing to show you is the inflation adjusted chart, because if they did no one would believe in buy and hold investing. The chart I have posted here shows the Inflation Adjusted price of the S*P500 from 1967 until 1996. You will notice that after the peak in 1969 it was 23 years (1992) until the buy and hold faithful got back to breakeven. 

To read the rest of this article and see the associated charts visit my FREE BLOG @ www.brandonfredrickson.blogspot.com