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 Index℠ 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.