LONG TERM LOWERS RISK

Publication
Article
Physician's Money DigestAugust31 2003
Volume 10
Issue 16

Moral:

If you put money into blue chipstocks, what are your chances of losingmoney on your investment? Accordingto statistics from IbbotsonAssociates, the risk of loss goes downthe longer you're in the market. Inthe 77 rolling 1-year periods between1926 and 2002, large capstocks had negative returns in 23 ofthem, or 30% of the total. Hold thestocks for 5 years, and the risk of losingmoney dips to 11%. Of the 68rolling 10-year periods since 1926,stocks notched positive returns in allbut 3. And stocks made money in allof the 63 rolling 15-year periods. If you can keep your moneyin the market for the long term,stocks are a good bet.

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