72 of 85 people found the following review helpful
Good for Stocks, Bad for the Individual Investor,
By A Customer
This review is from: Stocks for the Long Run: A Guide to Selecting Markets for Long-Term Growth (Hardcover)
Siegel's book is a good read, and he makes the case for equities a compelling one. However, if you're already aware that bonds, savings accounts, and gold are terrible long-term investments due to erosion from taxes and inflation (let alone lousy performance), then this book's strongest point is moot. Siegel's extensive research (some of which has been previously published) overwhelmingly supports the long-term investor; not the long-term investor as defined by today's market paradigm, i.e., long = 12-18 months, but rather looooong, like 20-30 years long...Two-day corrections or eighteen month bear markets can't hold a candle to Siegel's evidence proving that being 100% invested for long periods of time makes for sound financial acumen. Unfortunately, after all that great evidence, Siegel leaves individual investors at the altar, as he concludes that the only way for us to enjoy any investment success is to plunk most of our money in diversified mutual funds with low expense ratios (preferably index funds). This comes off like some kind of a thinly-veiled Vanguard endorsement and is extremely anti-climactic, considering all the great info in the previous chapters. I guess it's good to have on your bookshelf the next time the market drops 512 points and you become tempted to liquidate, because Seigel definitively proves you're better off sticking with stocks through thick and thin.