10 years of stock growth wiped?

moneysaver2x

Looks like the FTSE100 is approaching 2008 crises levels.
Does this mean over 10 years of stock growth has been wiped?
I think we are reaching a bottom soon.
This should be a good time to invest to get great returns when a vaccine is developed soon.

Kendall80

Maybe if you choose not to take into account 10 years of dividends.

dunstonh

Does this mean over 10 years of stock growth has been wiped?

No. In the meantime, there have been dividends paid.  They form part of the return.  

Linton

You are ignoring 2 important factors

1) Dividends.  If you reinvested the dividends, which is probably what would have happened had you bought a tracker, you would still be 40% up.

2) Investing solely, or even mainly, in the FTSE100 would be poor investing.  If you had invested in the FTSE World Index with reinvested dividends over the past 10 years you would still be up 140%.

moneysaver2x

Kendall80 said:

Maybe if you choose not to take into account 10 years of dividends.

Linton said:

You are ignoring 2 important factors

1) Dividends.  If you reinvested the dividends, which is probably what would have happened had you bought a tracker, you would still be 40% up.

2) Investing solely, or even mainly, in the FTSE100 would be poor investing.  If you had invested in the FTSE World Index with reinvested dividends over the past 10 years you would still be up 140%.

dunstonh said:

Does this mean over 10 years of stock growth has been wiped?

No. In the meantime, there have been dividends paid.  They form part of the return.  

I'm a new investor. 
Now seems like a great time to invest.
The stocks should approach a bottom soon.
Then it is only up from there onwards.
This change from bear to bullish market should occur when a vaccine is announed / and / or the number of virus cases start to decline, globally.

I would like to invest in strong companies with good financials, who have only suffered as a result of FEAR. When this fear goes away, these companies will resume normal operations and stocks will RALLY.

I am thinking about investing in airline and travel companies, as well as tech giants such as Apple/Microsoft/Amazon etc.

Is this a good choice?
Can you recommend companies you think will deliver huge returns?

Kendall80

Once the 'bottom' is reached you could probably put your money anywhere and achieve excellent results. If only one could find the bottom. Instead, I will be dripping in extra and keeping some available for further large drops.

Malthusian

Does this mean over 10 years of stock growth has been wiped for most people?

Nope. Dividends.

If you invested in the FTSE World 10 years ago, the market needs to crash another ~45% to wipe out all your growth, i.e. to a level not seen since the late 80s.

I think we are reaching a bottom soon.

Lots of people thought that in 2008 and 2001 when the market had fallen 20%, that's why they were still willing to buy shares for only a measly 20% discount.

A lot of them panicked and sold their shares at a 20%+ loss a year or two later, because they'd gone over their risk profile, they felt like crap because investing in shares at a 20% discount wasn't instant free money like they thought, and in this depressive state, they decided to listen to the expert consensus and sell everything before it got any worse. Then the market hit the bottom, because everyone dumb enough to lose money doing this kind of thing was already out.

moneysaver2x

Kendall80 said:

Once the 'bottom' is reached you could probably put your money anywhere and achieve excellent results. If only one could find the bottom. Instead, I will be dripping in extra and keeping some available for further large drops.

Which companies would you invest in? 

dunstonh

moneysaver2x said:

Kendall80 said:

Once the 'bottom' is reached you could probably put your money anywhere and achieve excellent results. If only one could find the bottom. Instead, I will be dripping in extra and keeping some available for further large drops.

Which companies would you invest in? 

Not companies you see mentioned on the internet.

moneysaver2x

dunstonh said:

moneysaver2x said:

Kendall80 said:

Once the 'bottom' is reached you could probably put your money anywhere and achieve excellent results. If only one could find the bottom. Instead, I will be dripping in extra and keeping some available for further large drops.

Which companies would you invest in? 

Not companies you see mentioned on the internet.

What are they called? Where can I find them?

k6chris

Linton said:

  If you had invested in the FTSE World Index with reinvested dividends over the past 10 years you would still be up 140%.

How do you invest in the FTSE World Index?  Is it an ETF??