Now that the dust has settled from the Stock Market collapse of 2008, I wanted to take a hypothetical view of what our accounts would have done had we not done anything. Below is the account I use as my model portfolio.
This account was magnificent from 2003-2007, growing from $100,000 to $282,000 during the time. Then 2008 hit, we sold some stocks to preserve capital, invested in some safer stocks, and ended the year down 60%.
I wanted to see where the account would stand had we held firm to our positions. In order to take the emotion out of the equation entirely, I assumed we did nothing since 12/31/07. The end result would have been a portfolio 18% higher as of the end of the first half of 2009. More below…
