Do Downturns Lead to Down Years?

See for yourself…

US Market is represented by the Russell 3000 Index

There’s always a drop coming. We don’t know when or by how much. But it’s coming…just like the next Tom Brady Super Bowl victory.

What’s more important is the overall effect on our behavior of these yearly drops. Many people get spooked and sell, understandably. It can be scary. But it shouldn’t be surprising. What may be surprising is the resiliency. Every year, a drop. Yet 16 out of 20 led to a positive return for the year. Would you have guessed that?

Drops are short term. Resiliency is long term, as is investing itself. So focus on the long term, invest, and expect success.

Cheers,

John, Bill, Mark & Melanie