Proper Perspective Can Help You Remain Calm | Capital Group

Market Fluctuations

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.


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.


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation. 

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.