1954 was the best year ever!

Why was 1954 such a pivotal year in the history of the USA?

Well, if you've attended our Social Security Lunch & Learn events, you may know that is a year that determines whether or not you can take advantage of certain Social Security Retirement Income strategies. Born in 1954 or before, you've more options than those of us born later. But that's not the reason.

Check out several interesting stats about 1954.

Some of them, like the 1954 Mercedes 300SL with "gull wing doors" I find cool. Others, like the fact this is the year of the Brown vs. Board of Education decision, are actually important. Maybe because this is the first year Elvis Presley...

Why was 1954 such a pivotal year in the history of the USA?

Well, if you've attended our Social Security Lunch & Learn events, you may know that is a year that determines whether or not you can take advantage of certain Social Security Retirement Income strategies. Born in 1954 or before, you've more options than those of us born later. But that's not the reason.

Check out several interesting stats about 1954.

Some of them, like the 1954 Mercedes 300SL with "gull wing doors" I find cool. Others, like the fact this is the year of the Brown vs. Board of Education decision, are actually important. Maybe because this is the first year Elvis Presley starts his music career makes 1954 both important and cool. But, as you might have guessed, I think 1954 is the best year ever because of something to do with investments...

In 1954, we had the best year in the stock market. Who would have guessed? This year, the S&P 500 returned investors more than 50%. (Source below) In 1953, or any year prior to that, nothing could prepare you for either Elvis, or the best year ever for stocks, ahead in 1954.

Think of the market as a grab bag like the one shown below. Every year we reach into the grab bag and we pull out a number. The red years show the percentage of losses, with the worst at the furthest left (1931). Most of the years are green, and the best year is at the furthest right (1954). The average is somewhere around a positive 10% per year. (Source below)

SP500 grab bag

Reach into the bag and pull out a ball and you'll be no more or less accurate than any economic forecaster out there. Except that, this year, 2017, I believe we share some interesting parallels with 1954. We have very low interest rates, very low inflation rates, real estate going through the roof, and a business-oriented administration.

Make it a great week. It just might be a great year, you never know!

Research, emotions and your investments
What happened to stocks for the long haul?

Go Tax Free

A&I Financial Services - Karl Frank Book - Go Tax Free

 

 

 

 

 

An assortment of tools and strategies that give readers of all backgrounds a clear, specific action plan for obtaining the maximum allowable control over when and how they pay taxes.
Learn more

Green Initiative Side Bar 2

The Green Initiative

Addressing Global Concerns on an individualized basis