Don’t Worry The Market Always Comes Back

By |2018-07-20T20:36:22+00:00July 7th, 2018|Annuities|

(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?

Use this link to find any time period for performance of the S&P 500: https://finance.yahoo.com/quote/%5EGSPC/history?period1=1514793600&period2=1530169200&interval=1d&filter=history&frequency=1d

About the Author:

Bill Broich
Bill Broich is a well-known annuity expert with over 30 years of experience. He has written hundreds of articles on annuities and other financial topics, and has been a featured commentator on TV, Radio and the Internet. To follow Bill's profile, click here.