It is not as if there is little to worry about these days as the S&P 500 pierced Bear Market territory (down 20% from the highs) in mid-June before rebounding somewhat, while traders have been fretting about the War in Ukraine, higher inflation readings and the increased risk of recession, not to mention comments and actions from the Federal Reserve. Of course, history shows that there are always headwinds that stocks have had to overcome on the way to achieving superb long-term returns, while those who have stuck with their diversified portfolios, be they Value- or Growth-oriented, have enjoyed very nice returns over the past two, three, five and 10 years.
This is not meant to diminish the equity market losses endured in 2022, nor are we trying to ignore the emotional roller-coaster that many have been riding. No doubt, we live in a sensationalistic world with the turbulent political discourse often leading to polarized views on many an issue, the prospects for stocks included. Still. we recommend taking a deep breath, while remembering that volatility comes with the equity territory…and that stocks have proved very rewarding for those who remember that time in the market trumps market timing.