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To: Lizzie Tudor who wrote (70957)	8/27/2006 8:06:22 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

No, I agree with you that this year hasn't been that good. I'm only up 3%+. And yes, I've earned more in my savings account than in my stock holdings. Ouch. However, the last 3 years have been good to me, though admittedly, nothing like the 90's. Frankly, I don't think we'll ever see anything like the 90's again in my lifetime. Those are once in a lifetime events. The sooner you and everyone else on these threads start internalizing that reality, the sooner you will diversify and ensure you get a steady, decent return for the long term. The 90's were an aberration, a statistical anomaly. As far as the S&P500, it's up 3.7% this year. That's a positive return. After inflation, it's barely positive. But no, that's not good, but this year is to be expected considering it comes directly after a three year period (2003-2005) when the S&P500 returned an avg annualized rate of 13%. That's an above average return by anyone's measure.

To: Lizzie Tudor who wrote (70957)	8/27/2006 9:01:20 PM
From: GVTucker	Respond to of 77400

Lizzie, RE: I guess it comes down to your window for whether it has been a good 3 years in the stock market. The 3 year return for the S&P 500 (from Aug 25 03 to Aug 25 06) is 35.6%, or 10.7% annualized. That is perfectly acceptable. For the Nasdaq composite over the same period, the annualized return has been 6.5%, not stellar, certainly but still acceptable, and still a far ways away from a bear market. A correction is traditionally defined as a drop of 10%. We haven't even had that. A bear market is defined as a drop of 20%. We're a long, long ways away from that. edit: peak to trough this year, we have had a drop of 10%, as was pointed out to me by others. We haven't had a 20% drop, no matter how you slice it, though.