Why You Should Avoid Stocks
Many many reasons over the years for why you should avoid investing in stocks.
The idea for this blog post—originally written a number of years ago—came from some sales tools they used to give us when I was selling mutual funds for a big bank. The name of the game was always to transition less profitable savings account and GIC assets into longer term mutual funds, and the era was circa 2006 to 2012 and there was still a lot of fear about the markets after the tech wreck in the early 2000s, and then the Great Financial Crisis (GFC).
Around that time I remember having this one page sales tool on a sort of pedestal frame sitting upright on my desk (facing client) listing many reasons throughout history that would have kept you out of stocks. If whatever news today has you worried and hesitant… here’s what would have kept you out of stocks in the past…
Longer term, there were wars, health epidemics (we had those before 2020!), recessions, oil embargos, you name it. The confounding thing through all of it—to anyone who paid a lot of attention to the news—was that over time the markets only went one way: up. And they returned a lot more than GICs. By owning a broadly diversified portfolio of stocks, and reinvesting the dividends, over any time period beyond around 15 years you had a positive return. Despite all the worry.
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Muhs Wealth Partners
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