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Stocks return to their 2007 levels.
Stocks will rise and fall, but over the long run, which is the time horizon of a retirement fund, stocks return much more than money left moldering in a money market fund that barely keeps up with inflation.
For 20 years, aftertax, stocks return five times better.
For 20 years, aftertax, stocks return five times more.
Many investors are mesmerized by the idea that stocks return 10% a year.
In a normal market cheap stocks return to full value in a few years.
Similar(48)
Emerging-market stocks returned only 0.2percentt, while developed-country equities lost 9.7percentt.
The S&P 500′s 465 smallest stocks returned 17.4%.
The Morgan Stanley Capital International index of emerging market stocks returned a negative 23% last year while Morgan Stanley's Europe, Australia, Far Eastindex (which includes a heavy dose of European stocks) returned 20%.
In 1982-83 stocksstocks returned 33.7% per year (versus 22.0% for large-cap stocks).
Meanwhile, the EAFE index, which is heavily into European stocks, returned 27%.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com