There is a new analysis out by Morningstar Investments that predicts small returns from US stocks over the next decade. Talk about great news for anyone in their 20s, 30s, 40s or early 50s! You get a whole decade to collect stocks that might pay off over the subsequent decades of our lives, perhaps well into retirement.
Of course stocks should only be one part of an overall strategy. There are pensions, bonds, savings, social security and other income to consider. That said, if we can dollar cost average some equities over a “lost decade” we could have quite a few shares after that much time.
As always, playing individual stocks is usually gambling at best. Sticking with low cost index funds gains the exposure and mitigates risk.