Only 1933 and 1973 Investors Required Huge Leaps Of Faith

Since 1900, there have been two sets of conditions in which it has been extraordinarily difficult to be a long-term, buy-and-hold investor. Those were the Great Depression conditions that surrounded 1973 (no duh), and the 1973 bear market in which the earnings of even great non-cyclical companies (think Pfizer, Johnson & Johnson, PepsiCo, Coca-Cola, Procter & Gamble) collapsed. 2008 is an honorable mention if you were an investor in the financial sector.

With many blue-chip stocks cutting their dividends in half and earnings falling by at least that much (and prices falling by 75% or more), you couldn’t assess the present fundamentals of the company and see that the prices were irrationally cheap—maybe … Read the rest of this article!