A recent article by Business Week argues that all signs point to more pain to come in the market, but opportunities are emerging for future investors.
By Jessica Summers
Written by David Henry, the article suggests that there are opportunities for “very, very long-term investors”, despite all signals pointing mostly to “painful scenarios.”
“The flip side is that new money put into the stock market now will likely do comparatively well over the long term,” Henry writes. “That's welcome news for twentysomethings and executive compensation consultants, but perhaps not for soon-to-be retirees.”
EQUITIES
The article also argues that just because investors have lost money in stock doesn’t mean that equities are a bad choice.
"Stocks can't make up for the past 10 years, but they can do extremely well from our current position," says Jeremy J. Siegel, author of Stocks for the Long Run and professor at the Wharton School of the University of Pennsylvania, tells Business Week.
He says that while stock returns have fallen behind government bond returns over the past 20 years, history says that's almost certain to reverse.
To read full article, visit www.businessweek.com