Headlines abound now about how horrible stocks performed on the just completed decade. The L.A. Times tells us that, "Stock market closes the books on a 'lost decade'." And, they show silly charts which mislead folks into believing that stock market investors lost money over the past 10 years. A chart like this one of a narrow index (the Dow tracks just 30 larger U.S. company stock prices) is hardly representative and includes no dividends. (The paper subsquently removed the chart)

In February, 2009, I wrote about the supposed lost decade talk which was making the rounds at that time and pointed out that stocks were comparatively cheap versus Treasury Bills and due for a major rebound. Since then, stocks have rebounded sharply and posted the best rebound from a bear market since the 1930s.

History has shown that bad decades are followed by good ones - see chart below.

Know the importance of being diversified and examining properly diversified stock and bond indexes. 

Copyright Eric Tyson, 2008 - 2013 all rights reserved.

Eric Tyson is the only best-selling personal finance author who has an extensive background as an hourly-based financial advisor and who does not accept speaking fees, endorsement deals or fees of any type from companies in the financial services industry or product or service providers recommended in his articles, books and his publications.