For those of you freaked by the recent losses in the stock market (never mind the tremendous gains) this might be a good article to read. It gives a good historical perspective. The only thing I didn’t like is that the author stated “Barring some unforeseen catastrophe like a massive terrorist attack, a stock-market crash from these levels is simply not possible.”
As much as I believe in the long term growth of the stock market, it is always, I repeat always possible to have a stock-market crash. Is it likely? No, possible, sure. The stock market is risky and that is why a globally diversified portfolio that includes stocks, bonds, cash, and real estate is essential.
Scott Dauenhauer, CFP, MSFP