Over the past several years, we’ve experienced a wide range of market conditions. While the recent high might feel great, the journey to get here wasn’t easy. Since 2017, US stocks have endured three separate 20% pullbacks.*

Despite these declines, those who stayed the course by continuing to add money to your 401(k), IRA, or brokerage accounts, have seen the value of their portfolio hit new highs. During this period, there were plenty of reasons to sell. These negative headlines made it difficult to stay optimistic, and we will likely face similar headlines in the future.

U.S. Stock Market Returns the Past 7 Years

The key to being a successful investor is resisting the herd mentality. When everyone is saying “sell,” you should be thinking the opposite.

Fast forward to today, and investing feels easy. The market is near all-time highs and volatility is low. You can earn 5% on your safe assets in money markets or T-Bills. If you stayed the course over the past few years, you’ve been rewarded

Enjoy the good times while they’re here, but remember that corrections are a normal part of the stock market. It’s important to prepare yourself for the fact that the stock market sometimes needs a breather.

George Maroudas, CFP®

George Maroudas, CFP®

Twitter @ChicagoAdvisor

Disclaimers / Sources:

*Rounded up for 2018. The three 20% declines were 2018: -19.8%, 2020: -33.9% and 2023: -25.4%.

Stock investing includes risks, including fluctuating prices and loss or principal. This information is not intended to provide specific advice or recommendations about any stock nor is it intended to be a recommendation to buy, sell or hold any stock investment. We suggest speaking with your financial professional about your situation prior to investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice.

Government bonds are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.