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Great depression produced positive returns in equity market

Posted By On 11/05/2008 02:43:00 PM Under
1. Are you scared because of current global meltdown in the stock markets than your fears are unfounded as even during the Great Depression years i.e. 1932 and 1933 when unemployment and economic difficulty was at its extreme saw stock market producing positive 34 per cent return in 1932 and a 25 per cent return in 1933. However when one is quoting these figures one is not considering the inflation aspect.

2. In case one is a long term investor than one need not fear as it has been only one time during the last 100 years when fixed deposit in bank would have had given better returns than equities and that was the time when one has purchased the stocks before the First World War, and then sold this equity during the great depression.

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