Dr. Jeremy Siegel of The Wharton School of Business performed an important study on the long-term returns for investors that made lump-sum investments during the peak of a bull market that lasted at least four years. He measured lump-sum market investments in June 1901, September 1906, September 1929, February 1937, April 1946, and December 1968 and tallied these results over a ten, twenty, and thirty year period.
During the subsequent ten years, the results are disappointing: A $1,000 investment in these peaks collectively grew to $1,250.
During the subsequent twenty years, the results are still somewhat disappointing: A $1,000 investment grew to $2,150.
However, once the measurement period becomes thirty years, the returns … Read the rest of this article!