History lesson from a long-term perspective

When the market is panicking !  That is your time to buy everything that is on sale temporarily, depending upon the circumstance. Most investors have a greater tendency than anyone else to get caught up in the moment and bailout at the first sign of trouble. Thanks to growing uncertainty, investors are getting out and staying out. A recent study from Goldman Sach's stated that investors are sitting on the largest amount of cash since 2000-2001. Also, equity holdings are at a five year low. History has shown that many of these investor's most likely sold their stocks long before the current bull market advanced.  Everyone has the intelligence to make money in the stock market, but not everyone has the nerves to get beaten up and to stay put . (Patients and Fortitude to Succeed )
First I will give you the recap of the positive Stock market movement and then the negative stock market movement.
Here is the recap that I promised you from January 1982 to January 1987 the market advanced about 200%. During that time Ronald Regan was the President. Most investor's doubted the bull market for many years, before finally getting invested. From January 1987 to January 2,000 the S&P 500 advance more than 400 percent.
  • If you look at the stock market from the year 2,000 to 2,009, we will see several big scares!
  • To Start the Decade (2,000-2,001 ) the market experienced a serious 50 percent decline!
  • A smaller yet big enough correction of 15 percent from 2002-2003.
  • An Additional 10 percent correction in 2004.
  • And Another Severe Market decline of 52 percent that began in the 3rd quarter of 2007 and lasted into the 1st quarter of 2009 .
With that Said the S&P 500 has appreciated more than 200 percent since the March of 2009 low, but the move higher has seen volatility and numerous corrections. This current bull market is the longest in history. Investor's who Panicked out at the market lows and the stock market because of Fear have missed Tremendous gains. Patients and Fortitude conquer all (bible), but it is extremely hard to do when everyone is panicking around you!
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