The chart below shows all the price data for the oldest stock index in the world – the Dow Jones 30. The time scale is 3 monthly intervals (i.e. quarterly), and the price scale is logarithmic. May I suggest spending a few minutes silently looking at it.

Now in the light of your reflection, ask yourself this – how old are the ‘expert’ speakers on financial news channels like CNBC and Bloomberg ? If they are anything less than 60, it is almost certain they have no direct professional experience of a gut wrenching bear market like in the 1930s, or of a market going nowhere for two and a half decades (1960s – mid 1980s).

What is my point ? Simply this - before getting carried away with the well articulated rhetoric of the financial press, remember they are extrapolating from limited experience – an experience which in all probability does not reflect the current reality.

Bottom Line: by all means listen to the ‘pros’ – but then analyse and decide for yourself. Your guess could be as good (if not better) than theirs.