Ghost of Igloi wrote:
Let’s take it to another level, how much higher does the S&P 500 need to rise above 2,088 (level when I first warned of rising valuations) to protect the principal from a -65% drop? If you think that is unrealistic remember the S&P 500 dropped 54% 2000-2002 (NASDAQ down -83%) and -59% 2007-2009.
Igy
So what if there is a 65% drop? I am a long-term investor and welcome a drop like that. Because I can plow a lot more money into the market and the market will soon recover all of that 65% drop and even more!