Value Investing

Top 15 Reasons Why Investors Have Missed The Bull Market

From the recession bottom March 9, 2009, through May 26, 2017, the S&P 1500 Index has gained 332.1%, meaning $1.00 invested in the index and held over that period would have grown to $4.32. What an opportunity for wealth accumulation! Yet, at ICON we suspect many investors, from pension plans to individuals, did not fully participate. We have been guided by our ICON valuation methodology which consistently indicated stocks, on average, were never over-priced typical of market peaks. In our commentaries to investors and interviews, we regularly stated that we were in a multi-year bull market and that stock prices could go higher. Let’s borrow from David Letterman and poke a little fun at those who missed out!

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Here now are the Top 15 Reasons Why Investors Missed the Bull Market of the Last Eight Years:

15. Didn't like the bailouts

14. Have been stuck in the 1970's and thought inflation would come back and interest rates would rise

13. Saw a head and shoulders top forming a few times 12. Thought P/E ratios were too high

1 1. Don't understand the Federal Reserve and thought the Government was "printing money"

10. Changed risk tolerance after 2008

9. Was told ”we are in a 17-year secular bear market"

8. Bought gold instead of equities

7. Really like earning 096 on CDs

6. Have been trying to reduce volatility instead of trying to make money - looking for an “alternative" to 332.196

5. Had predicted rising interest rates, and when that was proven wrong, believed low interest rates were fabricated and problematic

4. Thought Government deficits would cause a calamity

3. [Thought bull markets have a shelf life, like four years

2. Forgot “buy & hold" can succeed.

And the Number 1 reason investors didn't fully participate in the recent Bull Market:

1. Just not good at recognizing Bull Markets

Article by Dr. Craig Callahan - Founder & President - ICON Advisers

See the full PDF below.