Proper perspective can help you remain calm
PROBLEM: Studies show that people place too much emphasis on recent events and disregard long-term realities.
SOLUTION: Even amidst a market downturn, remember that stocks have rewarded investors over time.
The stock market has a reassuring history of recoveries
After hitting lows in August 1939 and September 1974, the Standard & Poor’s 500 Composite IndexSM bounced back strong, averaging returns of more than 15% over the next 10 rolling 10-year periods in both cases.
Long-term investors have been rewarded
Even including downturns, the S&P 500’s mean return over all rolling 10-year periods from 1927 to 2015 was 10.46%.
The bottom line?
A long-term perspective can help you prevail through challenging times.
S&P 500® rolling 10-year average annual total returns(12/31/1927–12/31/2016)
Source: Capital Group
Results are calculated on a monthly basis. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Past results are not predictive of results in future periods.
Standard & Poor’s 500 Composite Index is a market capitalization-weighted index based on the results of 500 widely held common stocks.
Other resources
Additional resources to help investors prevail through market declines.
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