By Dustin Giannangelo
CEO Fusion Wealth Management
Typically people expect the market to return 5-10% a year. What if we told you that almost never happens. The market has felt unpredictable to many, but we’ll show you how its gone up more often than down. It is vital that you understand the truths about investing when markets become volatile.
• In the past 91 years of the market, you only have approximately 7% chance of experiencing “average returns” of 5-10%. If you postpone investing until the market averages out, you might find yourself waiting a very long time.
• During the worst markets of -20% or more, there is a high probability of a positive double-digit return in the following year. Keeping a long-term approach even during dire markets is vital.
• The market has delivered positive returns each calendar year 74% of the time since 1926. As the chart shows, almost half of those positive returns were 20% or better!
• Many people fear the next stock market crash, but the market has only experienced six years of calendar returns of -20% or more. If you would have invested over the last 91 years the chances of suffering a serious loss were less than 7%.
*Chart Source: MSCI, 9/16/2018
Past performance is no guarantee of future results.
S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index.
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Fusion Wealth Management is not affiliated with Kestra IS or Kestra AS.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Fusion Wealth Management, LLC is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice and are not Certified Public Accounting (CPA) firms. FINRA's BrokerCheck