That’s what the last week’s 18 percent plunge in the Dow represents. We may well have a world-wide economic recession or depression, and I don’t think the United States escapes the economic malaise for at least two years. (More, if the government continues with these idiotic bailouts.)
But at some point everything will turn around, and when it does you’ll be wishing you’d purchased at today’s prices.
Of course as I’m writing this, only six of my 20 holdings are still above water and I’ve lost on paper almost $100,000. I would not be happy if I were nearing retirement in the next year or two. But for those with a 3+ year time horizon, this next year is going to be an awesome investing environment.
Well, either that or the whole house of cards comes crashing down. I’m gonna take the optimistic view.