Sign up to save your podcasts
Or
Share Why We Should NOT Run from Market Fluctuations! Money Not Math 118
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Why We Should NOT Run from Market Fluctuations! Money Not Math 118
Why We Should NOT Run from Market Fluctuations! Money Not Math 118
“Stock returns are volatile, but nearly a century of bull and bear markets shows that the good times have outshined the bad times.
The stock market’s ups and downs are unpredictable, but history supports an expectation of positive returns over the long term. For the best shot at the benefits the market can offer, stay the course.
Despite the year-to-year volatility, investors can potentially increase their chances of having a positive outcome by maintaining a long-term focus. Exhibit 2 documents the historical frequency of positive returns over rolling periods of one, five, and 10 years in the US market. The data show that, while positive performance is never assured, investors’ odds improve over longer time horizons. “ -Dimensional.com
**Correction: if you have $100,000 invested and it receives a return of 936% your money will grow to $1,036,000. Not, $936,000.
Dimensional does require you to be a member to access their articles so please contact me if you have questions or would like a copy sent to you.
#MoneyNotMath #5StoneFinancialGroup #RetirementPlanning #Retirement #Money #Investing #Stocks #StockMarket
Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.
Past performance is no guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.
In USD. Chart end date is December 31, 2021; the last trough to peak return of 119% represents the return through December 2021. Due to availability of data, monthly returns are used January 1926 through December 1989; daily returns are used January 1990 through present. Periods in which cumulative return from peak is –20% or lower and a recovery of 20% from trough has not yet occurred are considered Bear markets. Bull markets are subsequent rises following the bear market trough through the next recovery of at least 20%. The chart shows bear markets and bull markets, the number of months they lasted and the associated cumulative performance for each market period. Results for different time periods could differ from the results shown. A logarithmic scale is a nonlinear scale in which the numbers shown are a set distance along the axis and the increments are a power, or logarithm, of a base number. This allows data over a wide range of values to be displayed in a condensed way.
Source: S&P data © 2022 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value
Dimensional Fund Advisors does not have any bank affiliates.
View all episodes
By Drew Erickson
5
11 ratings
Why We Should NOT Run from Market Fluctuations! Money Not Math 118
“Stock returns are volatile, but nearly a century of bull and bear markets shows that the good times have outshined the bad times.
The stock market’s ups and downs are unpredictable, but history supports an expectation of positive returns over the long term. For the best shot at the benefits the market can offer, stay the course.
Despite the year-to-year volatility, investors can potentially increase their chances of having a positive outcome by maintaining a long-term focus. Exhibit 2 documents the historical frequency of positive returns over rolling periods of one, five, and 10 years in the US market. The data show that, while positive performance is never assured, investors’ odds improve over longer time horizons. “ -Dimensional.com
**Correction: if you have $100,000 invested and it receives a return of 936% your money will grow to $1,036,000. Not, $936,000.
Dimensional does require you to be a member to access their articles so please contact me if you have questions or would like a copy sent to you.
#MoneyNotMath #5StoneFinancialGroup #RetirementPlanning #Retirement #Money #Investing #Stocks #StockMarket
Disclaimer, this content is not legal, tax, or investment advice. You should always consult a qualified professional regarding your personal situation.
Past performance is no guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.
In USD. Chart end date is December 31, 2021; the last trough to peak return of 119% represents the return through December 2021. Due to availability of data, monthly returns are used January 1926 through December 1989; daily returns are used January 1990 through present. Periods in which cumulative return from peak is –20% or lower and a recovery of 20% from trough has not yet occurred are considered Bear markets. Bull markets are subsequent rises following the bear market trough through the next recovery of at least 20%. The chart shows bear markets and bull markets, the number of months they lasted and the associated cumulative performance for each market period. Results for different time periods could differ from the results shown. A logarithmic scale is a nonlinear scale in which the numbers shown are a set distance along the axis and the increments are a power, or logarithm, of a base number. This allows data over a wide range of values to be displayed in a condensed way.
Source: S&P data © 2022 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value
Dimensional Fund Advisors does not have any bank affiliates.