This Decade Was The Worst Ever For Stocks

This decade was the worst ever for stocks. Since the end of 1999, the S&P 500 index has lost an average of 3.3% a year on an inflation-adjusted basis which is worse then the performance in the 1930`s during the Great Depression:

"With two weeks to go in 2009, the declines since the end of 1999 make the last 10 years the worst calendar decade for stocks going back to the 1820s, when reliable stock market records begin, according to data compiled by Yale University finance professor William Goetzmann. He estimates it would take a 3.6% rise between now and year end for the decade to come in better than the 0.2% decline suffered by stocks during the Depression years of the 1930s.

Since the end of 1999, the Standard & Poor's 500-stock index has lost an average of 3.3% a year on an inflation-adjusted basis, compared with a 1.8% average annual gain during the 1930s when deflation afflicted the economy, according to data compiled by Charles Jones, finance professor at North Carolina State University. His data use dividend estimates for 2009 and the consumer price index for the 12 months through November." in WSJ

But Japan`s stock market had two decades like this in a row. So its difficult to argue that it cannot get worse going forward.