The decade ending this past December 31 was difficult for most investors.
One of the broadest equity indexes--the S&P 500--declined by more than 10 percent during the 10 year period that began on January 1 2000.
After adjusting for inflation, the decrease during the previous decade was more than 30 percent.
However, as discussed by New York Times columnist Ron Lieber, most investors did not begin the decade with a pot of money that remained static from the standpoint of inflows and outflows.
Liebner provides some interesting decade long scenarios that illustrate the impact of more dynamic and realistic investment decision making.
The results are interesting and reveal that all was not necessarily lost by investors during the "lost decade."
Source: New York Times
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