The Wilshire 5000 index is down 26% YTD.  Historically, since 1971, only one of 20 occurrences of drawdowns exceeding 20%, resulted in stocks being down just 1-year later, with the other 19 being positive.  All of the occurrences saw the index higher 3, 5, and 10 years later, which is simply astounding. Please make sure to take at the interest dataset that Charlie Bilello provided, which you should be able to see at the top of this email.

The best investing occurs when it is almost painful to pull the trigger.  All the news is bad and most analysts seem to be prognosticating that next leg down.  This results in stock and bond prices being driven down far below intrinsic value.  By the time most pundits and market participants are feeling optimistic again, stocks likely will have already rallied dramatically.  As the great Peter Lynch said, “the real key to making money in stocks is to not get scared out of them.”

I’ll keep this short today, as I just wanted to share this encouraging statistic that I thought you might find interesting with all the negativity that has been out there as of late.