The Four Most Dangerous Words in Investing

Roselyn Wilkinson |

"This time it's different." ~ Sir John Templeton

The bottom line is that neither the ups nor the downs last forever, even if they feel as though they will.  If you're reconsidering your current investment strategy, a volatile market is probably the worst time to turn your portfolio inside out. A well-thought-out asset allocation and diversification strategy is still the fundamental basis of good investment planning. Try not to let fear derail your long-term goals.

Data Regarding Market Recoveries

While nothing is guaranteed, this data might provide insight as to the potential recovery. The Standard & Poor's 500 is an index representing the top 500 companies in the U.S. It is not representative of a balanced portfolio.

Year

S & P 500*

Events

Through economic turmoil...

1929

-8.92%

Stock Market Crash in October

1930

-24.90%

Great Depression

1931

-43.34%

1932

-8.19%

1933

53.99%

Through war....

1939

-0.41%

World War II begins in Europe

1941

-11.59%

Pearl Harbor attacked and US enters war

1942

20.34%

Fighting continues...

1943

25.90%

1944

19.75%

1945

36.44%

War ends

Through political turmoil...

1972

18.98%

Watergate

1973

-14.66%

Oil embargo

1974

-26.47%

Nixon resigns

1975

37.20%

US withdraws from Vietnam

1976

23.84%

NYC threatens bankruptcy

Through many different kinds of turmoil...

2000

-9.11%

Dot Com bubble burst

2001

-11.18%

September 11th terrorist attacks

2002

-22.10%

Corporate accounting scandals

2003

28.67%

US invades Iraq

More economic turmoil compounded by environmental turmoil...

2008

-37.00%

Great Recession 

2009

26.46%

2010

15.10%

BP Oil Spill

                       More economic and political turmoil PLUS a pandemic.

2018

-6.24%

US trade war with China

2019

28.88%

Populism grows around the world

2020

YTD -23.38%

Coronavirus health crisis

2021

??

No one knows

*https://www.macrotrends.net/2526/sp-500-historical-annual-returns