Roller coaster ride...

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The market has historically had its ups and downs, but investments can come out OK, if you can hang in there with your money and hang on for dear life. That's what an analysis by Ludwig Chincarini, assistant professor of economics at Pomona College, seems to bear out.

He took a look at gains and losses on the Nasdaq Stock Market over time, and came up with some interesting numbers.

For instance, let's go back to 1981 and the economic woes of the time. From a peak in May of that year to its trough in July 1982, stocks lost 25% of their value: a -25% return.

But from July 1982 to July 1987, they had a return of 160%.

Here's another example:

From  a peak in February 2000 to the market's lowest point in January 2003, there was  a return of -72%,

But from January 2003 to January 2008, there was a return of 80%.

From February 2000 to January 2008 there was a return of -49%.

Whew...

The professor's point? Hang on. It could be wise not to take your money of the stock market, given that overall, stocks can take a beating but can keep on ticking and in time regain value.

 

 

 

 

 

 

About this blog

Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.

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Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
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Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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About this Entry

This page contains a single entry by Ryan Carter published on October 8, 2008 5:43 PM.

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