The start of the twenty first century has been absolutely devastating to investors, particularly those invested heavily in stocks.  Even if the market produces good returns in 2009 – and it certainly has not had a good start – the decade ending this coming December will likely go down in history as the worst decade for stocks ever.  We said THE WORST DECADE FOR STOCKS EVER.  For many this has had a devastating impact to their financial plans and dreams, and sadly those that are closer to reaching retirement may never be able to catch up with their retirement savings.

So far, the last 10 years have been the second worst decade for stocks on record – a record that includes the crash of 1929 and the Great Depression.  The results are not the worst ever yet – that will come in December – because of the 21% gain in 1999.  The market has lost on average 3.6% in the last nine years, and the S&P 500 has delivered an annualized total return of -1.38% in the last decade.

Why is this site, which focused on success, highlighting these depressing statistics and huge failure of stock investment to deliver on its promise of positive long-term results? The answer is simple:  The failures of the past increase the likelihood of success in the future.

More specifically, historically it has always been profitable to invest in the stock market after a decade of poor returns.  Yes, we said STOCKS HAVE ALWAYS BEEN PROFITABLE AFTER A DECADE OF POOR RETURNS.  To be exact, since 1928 there has been ten rolling 10 year periods when the S&P 500 returned less than 5% per year.  In every single one of these cases the 10 years that followed produced very positive results, averaging 13% per year and raging from a low of 7% to a high of 18%  per year.

Although no one can predict the future – run away if anyone tells you otherwise – it is highly likely that the next 10 years will be much better for stock investors than the past 10 years.  Intelligent investors should be welcoming the opportunity to buy businesses at low prices, increasing the likelihood that they will achieve very positive returns on their investments.

For those investors with a long-term perspective (at least 10 years) and the courage to stay true to their investment plan, this could be the opportunity of a lifetime.  No one knows for sure if we have hit bottom, and the markets will likely continue to be turbulent for a while.  But for those with the stomach to stay put through these trying times, stock investments will likely bring outstanding results.

To be successful financially one needs to take calculated risks and weigh the potential rewards against the likelihood of the risks materializing.  Given that we are about to close the worst decade ever, the odds are on your side.  The question is whether you are ready to give yourself an opportunity to be “lucky”.