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Jason T. Micheli, PhD

Jason T. Micheli, PhD

Jason T. Micheli, PhD will help you learn how to invest smarter, lower your taxes, manage your risk, and achieve your financial goals.

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Why Invest in the Stock Market If You Might Lose Money?

Home » Blog » Why Invest in the Stock Market If You Might Lose Money?

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Topics Discussed: Why Invest In the Stock Market?

In this episode we talk about why we invest in the stock market even though there is the risk of losing money. Specifically we address:

  • What does the history of the stock market have to teach us about investing and down markets?
  • How has the stock market reacted to crises in the past, and what can this teach us about investing for the future?
  • What are some simple, concrete steps an investor can take today?

Episode Notes: Why Invest In the Stock Market?

Graph of the bond market vs the stock market 2002-2020.

If you were to invest $100,000 on 12/31/2002 in the bond market (as represented by the Bloomberg Barclays Aggregate Bond Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be just over $200,000. 

If you were to invest that $100,000 in the stock market (as represented by the Russell 3000 Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be over $400,000.

If you were to invest $100,000 on 12/31/1996 in the bond market (as represented by the Bloomberg Barclays Aggregate Bond Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be just over $300,000. 

If you were to invest that $100,000 in the stock market (as represented by the Russell 3000 Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be over $500,000.

If you were to invest $100,000 on 12/29/1978 in the bond market (as represented by the Bloomberg Barclays Aggregate Bond Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be just over $1,500,000.

If you were to invest that $100,000 in the stock market (as represented by the Russell 3000 Index), and not add or subtract any to that account, your account value as of March 31, 2020 would be over $7,500,000. 

Source: https://www.bloomberg.com/quote/LBUSTRUU:IND; https://www.ftserussell.com/products/indices/russell-us

Resources

Stocks for the Long Run

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Jason Micheli

Jason T. Micheli, PhD

Jason is a financial advisor in Orange County California and the Senior Vice President of Financial Growth Management, Inc. Jason graduated with a degree in finance from the University of Colorado in Boulder, and has graduate degrees from Princeton Seminary and the University of Wisconsin – Madison. When he’s not optimizing investment portfolios, you can find him traveling, searching for snow to ski in the mountains, or trying to learn how to surf.

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