Basic Investment Theory Explained

Kevin E. Cahill Sheila Campbell

JTF#9

Introduction

The S&P 500 Index dropped more than 40 percent between March 2000 and March 2003, and almost anyone who entrusted their retirement savings to the bull market of the late 1990s saw their portfolio shrink, often in dramatic fashion. Now that the stock market is regaining some of its lost value, should people return to their bull market strategies for double-digit annual returns on their retirement savings?