He said when the year is done there will be minus signs on returns. You can’t expect double digit returns every year. Some years will be negative. So what? One always has to be prepared for a crash by either being willing to ride it out or invest more conservatively.
Bill Gross has predicted 10 of the last 2 recessions.
Or....have stops in place.
On the other hand, the wild fluctuations must indicate something is not right. One day we have a huge drop because oil is tanking. The next day, oil is still tanking, but the Fed indicates continuing aggression in the stimulus game and it soars again. The next day, it tanks because China isn't doing as good as predicted. The following day, 277 people are found to be without jobs so it tanks again.
The market has been co-opted by the microsecond traders who are very good at making a profit on upticks and down-ticks so they manufacture lots of both while they bleed the capital from the little guy.