Navigating market volatility is nothing new, as nearly a century of market data clearly demonstrates.
Short-Term Dips, Long-Term Gains
Investors fear declines, but they are more common (and less damaging) than you think. Since 1976, the S&P 500 has experienced an intra-year decline every year. Yet despite these pullbacks, the majority of those years still closed with gains. Recognizing this pattern is essential to staying invested and achieving long-term growth.
Recession start and end dates are never known in advance, and stocks have typically seen only modest pullbacks during contractions. Investors who stayed on the sidelines waiting for the “all-clear” often missed out on the powerful rallies that followed. Since 1927, equity investors have enjoyed impressive average returns: Value stocks (13.1%), Dividend stocks (10.8%), Large Cap stocks (10.3%), and Small Cap stocks (11.8%).
Every dip in the market has been followed by a recovery, often stronger than the decline itself. History shows that those who remain invested through these periods are the ones who benefit most from the market’s long-term upward trend.
Get in touch
We believe true wealth management goes beyond numbers– it’s built on trust, transparency and a deep understanding of your goals. As fiduciaries, we’re committed to putting your best interests first, always.
Whether you’re navigating life transitions, planning for future generations or seeking a partner to help you make confident financial decisions, we’re here to help.
To learn more about our personalized wealth and asset management services, please contact:
Jason R. Clark, CFA
Principal, Portfolio Manager
949.424.1013
jclark@kovitz.com
TPS Wealth Foundations - Short-Term Dips, Long-Term Gains
Kovitz Investment Group Partners, LLC (“Kovitz”) is an investment adviser registered with the Securities and Exchange Commission. This report should only be considered as a tool in any investment decision and should not be used by itself to make investment decisions. Opinions expressed are only our current opinions or our opinions on the posting date. Any graphs, data, or information in this publication are considered reliably sourced, but no representation is made that it is accurate or complete and should not be relied upon as such. This information is subject to change without notice at any time, based on market and other conditions. Past performance is not indicative of future results, which may vary.
