Avoiding market volatility may sound good in theory, but volatility is the price of admission for the stock market. I’m sharing the charts below because today is the 13th year anniversary of the GFC lows. Since then, there have been plenty of declines like our current one.

Each decline had its own story attached to it. There will never be a time when it’s “all good”. And it’s common for investors to have the urge to sell during market drawdowns. But if you view volatility as a fee for admission to long-term returns, you will have a better chance of riding it out.

Stocks have historically been the greatest wealth generation machine. It’s not by mistake that the wealthiest 10% of Americans own 89% of all US stocks.

Since 1926, the stock market has returned 10.5% annually. During that time there was The Great Depression, numerous recessions, World Wars, pandemics and much more.

Bottom Line
It’s the media’s job to get you to tune it, but it’s our job to help people focus on their long-term goals. History has shown that the stock market has rewarded investors for riding out volatility. Big returns amid constant chaos and volatility have happened throughout the entire history of the stock market.

George Maroudas
Twitter @ChicagoAdvisor

Disclaimers and Sources:

Chart from LPL Research
S&P 500 Data from FactSet Report
Reason to Sell Chart Link here
Wealthiest 10% own 89% of Stocks CNBC
Chart data from YCharts

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