Business

Should you start investing if a depression is coming? – Data analysis

MSCI World index history between 1969-2018.

This is a summary from the original Finnish blog article.

Data analysis result: Invest only the money you don’t need at the moment

The purpose of the stock market analysis was to answer this question: Is it good idea time to start regular investing if a depression is coming?

I explored a world wide stock index called MSCI World to figure out.

To summarize the results, investing is most often profitable in long run. However, during the time periods of 10 or 15 years, it is very common to be at minus side significant amount of time. After that it has been unlikely that a disciplined investor wouldn’t have made profit.

Data analysis of the stock markets

The stock market data analysis repository is available at my Github account.

The documentation is in English.

How much profit you make in 10 year by investing regularly to a World index?

This video shows how much a monthly investor would have made cumulative profit when starting in different years.

Usually worst years to start have been those just before a stock market crash or depression. For example investor starting 1999 just before IT bubble would have suffered from high stock prices.

Vice versa, starting at the beginning of 2009 would have been a great timing. However, you can’t know the best time beforehand.

 

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