(Private conversation between a stock broker and a client)
Client: Mr. Broker, since the first of the year, my account invested with your recommendation, the Dow Jones Industrial Average has lost almost 10%, why?
Broker: Don’t worry, the market always comes back.
Client: Yes, but I was planning on retiring sometime this year and you said large American companies was the best place to keep my money, now how long will I need before I can retire?
Broker: Don’t worry, the market always comes back.
Client: What do I do if it doesn’t come back in a year or two, how will I be able to retire?
Broker: Don’t worry, the market always comes back.
Client: Maybe I should have used the Standard and Poor’s Stock Index instead, it hasn’t lost money has it?
Broker: Yes, great idea, since January 15 to June 28, it has done much better than the Dow, we should make the change.
Client: Great, what has it earned?
Broker: Well, it isn’t how much it has earned, it is how much less it has lost. In January 16, the S&P 500 closed at 2776 and now on June 28th it closed at 2716. Not as bad a loss as the Dow, shall we make the switch?
Client: Are you saying to me that it also lost money?
Broker: Don’t worry, the market always comes back.
Client: I wish I hadn’t listened to you, I wish I would have moved my money to an annuity.
Broker: Don’t worry, the market always comes back.
Client: May I borrow your gun?
See the performance of the S&P 500 during any time period on Yahoo Finance.
