An enormous shift is coming in the stock market …
The shift I’m talking about will bankrupt many investors who’ve made gobs of money during this historic bull market over the past 10 years … and make millionaires out of a totally different type of investor.I am not talking about a crisis or a bear market — though the market’s December drop does play a role in it.
Whether you are one of those millionaires will depend entirely on your understanding of history. Anyone with a passing knowledge of stock market history should already know all about the massive shift I’m about to describe …
I’m talking about a shift in the balance of power between two huge investment forces …
This idea first appeared in a little-known book published in 1924. That’s the year an investment adviser named Edgar Lawrence Smith published a terse little volume called “Common Stocks as Long Term Investments.” The book laid out the research Smith had done on the historical performance of stocks and bonds.
Originally, Smith thought he was sitting down to write a pamphlet on the superiority of bonds as long-term investments. He examined decades of stock and bond price data, from 1837 through 1922.
To his great surprise, Smith found that stocks had been the better long-term investment. For the rest of the story go to investorplace.com.
