Stay the course: Below is a chart from the Visual Capitalist1 that shows what a $1,000 investment in October 2007 in 15 different stocks would look like if they had been left alone for the past 10 years. In the picture below, the blue dot represents the initial investment of $1,000, while the pink represents what that $1,000 was worth as of October 31, 2017. All returns are on a price return basis only..
For comparison purposes, if that $1,000 had been invested in the S&P 500, then it would be worth $1,674.19 on October 31, 2017. The 10-year interval was chosen because it coincides with the prior peak of the market back in 2007.
After the initial purchase, investors would have been in for a rollercoaster ride as the S&P 500 declined 38.48% in 2008, but then saw a 23.5% gain in 2009.
Given the current market environment and the fact that we are now approaching the second longest bull market in history, we want to reinforce patience and not trying to time the market. Make sure that you have a plan and stick to that plan should we have any bumps along the way.
The chart is for informational purposes only and does not constitute a recommendation or an offer to sell or a solicitation to buy a security or adopt an investment strategy. Past performance is not indicative of future results. An index is unmanaged and you cannot invest directly in an index.
