Thread by @LanceRoberts

"Despite a few notable hiccups along the way, the bull market continues to prove insanely resilient.” @slangwise
What if? We explore what a 10-60% correction would do to investors and their #retirement. While this #TimeIsNotDifferent, you are.
realinvestmentadvice.com/market-downtur…

@slangwise Looking at potential retracement levels, to the lows of 2018, or the highs of 2015-2016 would not be out of the ordinary. A mean reversion event would be the lows of 2016 to the highs of 2008.
realinvestmentadvice.com/market-downtur…

@slangwise A problem with #market #corrections always overlooked by #mainstream #analysis.
If you need 6% per year to reach your goals, and suffer a 20% correction, it doesn't require JUST 25% to get back to even. You have to ALSO make up the 6%/year lost as well.
realinvestmentadvice.com/market-downtur…

@slangwise At this point, a 20% correction would wipe out all the 2019 gains and set investors back to 2018.
realinvestmentadvice.com/market-downtur…

@slangwise A 40% correction would wipe out all the gains from 2015 to today.
realinvestmentadvice.com/market-downtur…

@slangwise Another 50% correction, we have had two this century already, would effectively wipe out all the gains since 2007 on an #inflationadjusted basis. But on a nominal basis, 2013 levels would be just as devastating for #retirementgoals.
realinvestmentadvice.com/market-downtur…

@slangwise Don't think a 60% correction is possible?
1) Correction begins
2) Decline weakens #confidence, companies stop #buybacks.
3) Further decline triggers $5 T bond problem
4) Bond decline triggers run on #pensions
5) Boomers liquidate.
#Demographics
realinvestmentadvice.com/market-downtur…

@slangwise Just ran a quick chart.
If you needed a 6% annual return from the market at the peak in 2007....Congratulations....you are now back to even.