We hear all the time, “The market ALWAYS comes back!” Or “It’s INFLATION we need to worry about!”
Are these things actually true? How does one quantify that? Past experience? Government debt? Back-testing?
Well, if we are to use those as metrics don’t we have to look at Japan and see what we can learn from the recent past? And trust me, my friends, it ain’t pretty.
in my book, Retire With The Wellington Fund, I did a chapter showing what happened in Japan starting in 1990. Thankfully, bonds would have rescued you then. No more. The yields on bonds in Japan are NEGATIVE! So, while history suggests things go up…history is not always proof of future events.
Proceed with caution is you’re about to retire.