The Press Release Resource

• Tweet

• Tweet

Warwick Ventures has spotted an interesting trend within the American stock market. For 10 years ending last December, stocks have offered a negative 3.15 per cent real return for US investors, constituting the fourth worst 10-year period since 1871. Since 1871, the three worst 10-year returns for stocks have ended in the years 1920, 1974 and 1978. Interestingly , these hard times for investors in American stocks were followed by high stock returns of more than 8 per cent, 13 per cent, and 9 per cent over the next 10 years (adjusting for inflation).

In fact for the 13 10-year periods of negative returns stocks have suffered since 1871, the next 10 years gave investors real returns that averaged more than 10 per cent per year. This return has far surpassed the average 6.66 per cent real return in all 10-year periods, and is twice the return offered by long-term government bonds.

Warwick Ventures suspects that now might be a good time to invest in US stocks. Jeffery Samuelson urged his investment team to look to the US Stock market explaining, “US stocks are cheap compared to forecast earnings.”