Riding the Market Waves: Why Long-Term Investing Wins
At Wealth|KC, we know that market volatility can be unsettling. When headlines scream about downturns and corrections, it's natural to feel uneasy. But here’s the truth backed by nearly 100 years of history: the market rewards patience.
The Bull-Bear Story in Numbers
From 1926 to 2024, the S&P 500 has weathered 18 bear markets, each defined by a decline of 20% or more. These bear markets lasted an average of just 10 months, with downturns ranging from –21% to as severe as –80%.
But here’s the brighter side: during the same period, the market experienced 19 bull markets—periods of at least 20% growth. These bull runs lasted much longer, averaging 53 months, and posted gains from 21% to a staggering 936%!
Put simply: for every downturn, history has delivered a stronger, longer recovery.
Why This Matters for You
The chart in the report offers a visual reminder of a powerful truth: despite short-term turbulence, the stock market has historically trended up over time. This isn't just theory—it’s data-driven evidence that supports disciplined, long-term investing.
When you stay the course, you allow time and compounding returns to work in your favor. Reacting emotionally to short-term losses often means missing out on the powerful rebounds that follow.
Staying the Course with Confidence
It’s easy to feel uncertain during a market dip—but that’s when long-term investors often build real wealth. This is why we encourage clients to see beyond the short-term noise, focusing instead on personalized strategies that align with your financial plan!
Process > Predictions
Shean