Logically what you say, Bob, makes sense, but markets are not logical. In reality, people come to expect an economic slowdown, and - it happens, and equities keep coming down. In the course of a major bear market prices come down, PE ratios "contract", and dividend yields go up.
If you are good - or lucky enough - to roughly catch the big swings, you can do very well. Looks like we may be entering a potentially substantial downswing.
Edit -- that said, if our government in its infinite wisdom were to go nuts and trigger hyperinflation, I'd rather be in equities, best in index funds. Why? Because the economy and the markets will eventually come back, but a destroyed currency - never. |
