Most Minnesota stock market investors think that the stock markets will rise forever. You can’t really blame them. There has not been a meaningful stock market crash for almost six years.
Since 1929, there has been a stock market crash every 3.4 years.
Human nature never changes. The stock markets are a perfect example of human nature.
Great stock market rises are always followed by great stock market crashes. The time periods and percentage gains and losses always change. But fear and greed never change.
There may be another 5% to 10% upside from the current all-time high stock market levels of early July. No stock market expert can ever know for sure. I certainly don’t fall into the category of a stock market expert.
The most import stock market investment strategy now is to have a game plan in place for a meaningful stock market decline. Preservation of the last few years of stock market gains needs to be your number one personal financial management priority right now.
Previous stock market crashes fall anywhere between 20% and 50% off the previous highs. I can’t say for sure that the stock market will fall that much. But stock market history is on my side when I make that statement.
I am not using this blog space to predict doom and gloom. I am writing this blog post to remind all who read it that historical stock market realities do exist.
The mutual fund manager of your company 401(k) retirement plan money will buy-and-hold your retirement plan money no matter what the stock market does. For that reason it is up to you to navigate the next great stock market decline.
You can do it on your own. You can do it with your current investment advisor. Or you can find an investment advisor who has a game plan to protect your money when the stock markets stop going up.
It needs to get done. Now.
Ric Lager
Lager & Company, Inc.
