On average this decade, the S&P has lost 1% a year. In fact, Surz says, investors probably would have been better off in bonds or Treasury bills than stocks. It makes many wonder what actually is safe.
One place investors could have come out ahead is in foreign markets, which returned more than 6% per year until recently.
But just because the 2000s might wind up being a loss overall, there are still lessons to take away. For one, this kind of period is a great way to “stress test” those investments meant to be good defensive plays. How are they really holding up? It’s a good way to see how your professional investment managers do, too. What sectors and styles have done well, and which haven’t?
While the year is almost over and we’re down right now, we’re never completely out if we can recognize and use the valuable lessons in the future.
