“It wasn’t supposed to be this way!” That’s the refrain from many investors who are looking at a U.S. stock market SPX, -2.91% decline so far this year of about 13% .
This route is easy, you will have lots of company, and you might even derive some short-term comfort from all that camaraderie. In every case, the market came back and hit new highs. That was the reward for investors who could look beyond the immediate pain. One good choice is a lifetime portfolio filled 100% with equities. If you have the patience and faith to let your investments suffer temporarily through downturns and bear markets, everything we know from history suggests equities will continue to bounce back and reach new highs.
By the end of the 20th century, the accepted wisdom was that you should own the largest and most successful U.S. companies, through the S&P 500 index.
This article is commisioned by evil financial institutions who want to suck the money out of your retirement savings.