On the stock market people often want to make as much money as they can and as fast as possible. In most cases this is a very difficult assignment, however. Sooner or later a moment will come that will wash away all your nice profits like they never even existed.
Long term investors are still the best performers on the stock market. They invest their money for a longer period of time and the goal is to outperform a regular savings account. In recent years the stock market has done its best, but it was not like the late ’90s as well.
10% Per Year, Is That Possible?
On the chart above it becomes clear that the period of 2000 until 2009 has not been a great period for long term investors as the trend was mostly sideways. Only in recent times most indices were able to break through their resistance levels and restart their upward trend.
In the coming years people are counting on that trend to continue, of course. Nevertheless we should keep downward pressure into account as well. Over the last five years the stock market has blown off a lot of steam and a break could very well be in the works.
Every year there are opportunities to be found, however. Most investors are still on the sidelines when it comes to gold or gold mining stocks, for example, and the odds are high that this segment will have a great year in 2015.
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