Break-Even After 1929 -- 25 Years or 4.5?

In a recent article in The New York Times, financial writer Mark Hulbert re-examined how long it took stock investors to break even after the 80% losses of 1929 to mid-1932.  Taking into account deflation, dividends, and the overall market, he concluded that the recovery back to break-even took 4.5 years, not the 25 years shown by historical stock charts. 

Hulbert's conclusion:  "None of this, of course, guarantees that stocks will have a quick recovery from the market decline that began in October 2007.  But it suggests that the historical record isn't as bleak as it looks."  Please click here for Hulbert's article.

Scott Middleton