June 27, 2016
Stocks could get ugly for the next 35 years. Here’s what to do about it.
Volatility? The Brexit crash? Shrug it off, say the wise men of investing.
The possibility that stocks could crash 20% or 40% next year matters a lot to someone planning to spend the money next year, of course. But if you are investing for a retirement decades hence, you are told, you shouldn’t worry about volatility. The law of large numbers dictates that your average annual return over a long span is going to be pretty close to what you expect.
Or does it?