1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Do the lessons of history suggest that there could be better years to come for the U.S. stock market?

October 27, 2008

Could we be approaching a so-called “lost decade” for stocks — one in which equity returns for the previous 10 years were flat or negligible? If we are, it is an occurrence that happens very infrequently.

In fact, in the 20th century there were only two periods in which rolling 10-year annual total returns fell below today’s 3.06% level: one that began with the Great Depression and one in the decade that ended with the recession of the mid-1970s.

The major market downturns that bottomed in these lost decades of the 20th century are highlighted in the chart below. It also shows that long-term investors who remained invested in the market were rewarded with better rolling 10-Year annual total returns in the years that followed.

Read the complete report

Rating: 2.7/5 (10 votes)


Aiming_high - 8 years ago    Report SPAM
Bill Miller: Knowing that this guy beat the market for 15yrs gives me inspiration to try stock picking myself............if he can anyone can. His concept of value is so lame that if ben graham was alive he would personally make sure that he is not called a value investor.....

Max7777 premium member - 8 years ago
Yes this historical fact is very nice, but if you take into account inflation, which you should since this is real money we are talking about then it gets worst you also have the case of the second largest world economy: Japan, now at a 26 year low and way more than 30 year low if you look at inflation adjusted data.. so here is very nice country with hard working people that had a case of bad banking crisis and eco going south at the same time and 3 decades lost.. and still counting

Now, I do not think this is going to happen to us, and i have started buying stock again last week, but we can not rule it out yet.. nothing is off the table

Please leave your comment:

More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by

User Generated Screeners

daftheadersg hk best
henrikLynch inspiret Oct 17
lajor10Low EV/EBITDA
canidPE >50th percentile of INDUSTR
brucexoct 17 user defined screen
AngryQuality Growth cheap
EnjoylifeDad 1
punjanoot2007a academy+joe
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat