Don’t forget that markets can stay down for a long time after they’ve crashed. Remember how long it took the Nasdaq to recover from the tech crash?
Jonathan Weil writes in The Wall Street Journal:
“Five percent is more or less the average of investment-grade rates since the time of Alexander Hamilton,” said James Grant, founder and editor of Grant’s Interest Rate Observer. “The problem is the structures that 10 years of ultra-easy money brought about. People blame it on the normalization of rates. The previous bout of abnormal rates is the problem.”
And the Nasdaq isn’t known for paying much of a dividend.
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