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To: Jurgis Bekepuris who wrote (75984)4/8/2009 4:34:43 PM
From: Keith FeralRead Replies (2) | Respond to of 118717
 
Bonds and cash are the investors 2 worst enemies in a deep recession. No inflation protection on the other side of the recovery. Stocks have been a terrible place for the past decade, having gone through 2 major recessions in 2000 to 2002, and 2007 to 2009. It's just like the 1930's when the market had to absorb the bear market in 1930 to 1932 and 1938 to 1940.

All the people that gave up on stocks in the 1930's ended up with cash too. It doesn't take a rocket scientist to figure out the best strategy coming out of a bear market - buy and hold. The case is even more convincing if we are coming out of a Depression. Literally every book on modern finance is based on historical returns for the DOW dating back to the Great Depression.

All of the once in a generation stress on the system will everntually be realized as a generational opportunity.