Long-Term Investing + Optimism = A Bright Future, Ep #18 

<p>There’s a lot of negativity in the news. It can weigh on your mind and impact how you view your life—and your investments. The turmoil of the current political climate paired with uncertainty in the economy and then magnified by the Coronavirus has us all questioning the future. <em>Where do we stand today?</em></p> <p>I believe the path forward is bright. I believe what we have been through can shed light on our future. So in this episode of Retirement Made Easy, I share a look into the past 45 years of investing. If you’re looking for an optimistic take on the future, don’t miss this episode. </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[2:12] What the past 45 years can tell us about the future </li> <li>[6:48] The secret to most investors accumulated wealth</li> <li>[11:54] The DALBAR study and correlation with investing</li> </ul> <h2>What the past 45 years can tell us about the future </h2> <p>I chose to look at a 45-year timespan because 45 years is a lifetime of investing for most people. All of the information referenced in this episode is from J.P. Morgan’s <a href= "https://am.jpmorgan.com/us/en/asset-management/gim/adv/insights/guide-to-the-markets" target="_blank" rel="noopener">Guide to the Markets</a> and the <a href= "https://am.jpmorgan.com/us/en/asset-management/gim/adv/insights/guide-to-retirement" target="_blank" rel="noopener">Guide to Retirement</a>. I’m referencing the S&P 500 index as a gauge of the US stock market as a whole.</p> <p>Since 1975 we’ve been through wars, terrorist attacks, assassinations, Y2K, hurricanes & tsunamis, the 2008 financial crisis, and more. But since 1975 the global population has grown 80%. The US economy tripled (measured by GDP growth) during a time where we only saw 50% population growth. In 1975, the S&P 500 index was 90. January 1st, 2020 the S&P 500 was 3,257. <em>That is a 4,278% increase in 45 years</em>. That 45 year period has been the greatest accumulation of wealth in this country’s history. </p> <p>The S&P