Investing can be an emotional journey. In both rising and declining markets, it’s all too easy to fall into the trap of making emotional decisions—often at the worst possible times. That’s why sticking to a well-thought-out plan is crucial.
Let’s look at the facts:
The Odds Are in Your Favor
Since 1929, the stock market has delivered positive returns in 70 out of 96 years. That’s a 73% chance of ending the year with more money than you started.
The Power of Big Gains
In 57% of all years, the market was up 10% or more.
In more than a third of all years (36%), returns were 20% or higher.
And here’s the stat that blows minds: In 18% of years—that’s nearly one in every five years—the S&P 500 was up 30% or more.
What About the Downside?
While investors often fixate on potential losses, the data shows how rare large downturns truly are:
The market has only dropped 20% or more in just six years since 1929.
That’s just 6% of the time!
Here’s the takeaway:
You’re more than six times as likely to experience a year where the market is up 20% or more than one where it’s down 20%.
When someone asks how you’re preparing for a potential downturn or suggests trying to time the market, consider this: Are you more likely to miss the rare down years—or the abundant good years that drive long-term wealth?
