The period from January 1973 to
September 1974 was one of the worst periods of performance in the
history of the stock market. During these 21 months, the value of the
Standard & Poor's 500 Index fell by more than 50%. While savvy
investors may have found ways to minimize their losses, virtually
no one made money in the stock market during this period.
To get a sense of the investing atmosphere during this bear market,
take $10,000. Invest it in your choice of equity asset classes in January
1973. After you've invested 100% of your money, jump ahead to
September of 1974 and see how much your investment is worth. Try it
with several different investment allocations.
The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.