pay attention or pay the offer

Here’s a monthly chart of the S&P 500, which right now is at 1163.  The chart shows how the S&P could fall to 650 in the next two years and still ‘go up in the long run!’ Such a decline would represent a 44% drop from today’s values, and a stunning 59% drop from the all-time highs.  So yes, the ‘buy for the long-term’ crowd might be right, but are they prepared for the wrong that will be done to their portfolios in the meantime?

click chart to enlarge