Do downturns lead to down years when investing?

Stock market slides over a few days or months may lead you, the investor, to anticipate a down year. But a broad US market index had positive returns in 17 of the past 20 calendar years, despite some notable dips in many of those years, as the chart on the right illustrates. 

Even in 2020, when there were sharp market declines associated with the coronavirus pandemic, US stocks ended the year with gains of 21%.

Volatility is a normal part of investing. Tumbles may be scary, but they shouldn’t be surprising. A long-term focus can help you keep perspective and an experienced wealth manager can help you do just that.

Get in touch if you worry about the tumbles.