Quoted from BMore-Pinball:
Problem is, past ROI is no guarantee for future ROI. Current market returns can easily trick a new investor into thinking it's normal and expected.
Paying cash and being debt free gives you a sense of security and piece of mind that many value
Sure there could be a crash, there was a mini one for covid but it showed how resilient its getting. 2008 had a good one. and before that decades before.
However the Average YOY ROI is around 11% averaged out through the entire history. so that is a pretty good average. If you get 2/3rds of that with your investments if you chose wisely or used safe bets. etc. You should be fine. as you get older you move items in to less risky situations. That is how a 401k works you chose more aggressive strategy when younger with more risk = more reward and if unrewarded you have time to recover. As you get close to retiring you do not wanna be going all in on one bet now would you? lol
So pas ROI is actually a pretty good measure of future aspects. If you want to contemplate a random crash of an unforeseen reason that is not really going to be viable and then NO ONE should EVER invest and the stock market should be closed down.
However even if you invested in 2008 you would have recovered all of your money and then some. if you bought MORE there fore lowering your entry point you'd have still made money. above the inflation rate for sure and still have been around average.
I think its the ones that really truly do not know what they are doing and they just toss it into a managed account that see that way. But you if you actually do your own trading and the due diligence behind it. and have an understanding of the fundamentals you would be fine even in a crash.
As its crashing, sell out. when it bottoms out/ starts to climb back up you buy back in and buy MORE to make up for the loses when the market returns. It always has. and if it ever does not return and continue growing the world is going to end.
just from inflation alone the market is always growing. there are spikes and dips and even crashes and bubbles but its always going up at an approx. 11% trend You just have to divide your money right to match (or beat) or just come in under that average. That is where the skills come in and the due diligence of research etc.
I believe that is a decent climb for 100 years of crashes and rebounds including several bubbles. And the dow I think lags behind a tad of overall.