Learning from our past
Past markets are no predictor for future movements, but in this case, a 20-year-old history lesson helps put things in perspective. The Federal Reserve may back off on buybacks, and that will undoubtedly hurt the market. But Ben’s only going to pull the plug if the markets are well on their way to making returns magnitudes higher than any one-day drop. And when that happens, long-term investors will sit back and enjoy the slight slump on their double- or triple-digit profits.
The article Wall Street Got It Wrong — but You Don’t Have To originally appeared on Fool.com.
Fool contributor Justin Loiseau owns shares of General Electric Company. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Intel and McDonald’s and owns shares of General Electric, Intel, and McDonald’s.
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