It’s all gonna be alright.
Mr. Market is bigger than geopolitics even if the Doppler Effect of current events is deafening.
For some perspective, I like to zoom out.
During my investing lifetime, we’ve lived through 3 of the worst 5 S&P 500 drawdowns in history.
– COVID 19 (down 34%)
– The Great Recession (down 57%)
– The Internet Bubble (down 49%)
And yet on the other side of that nastiness, the S&P 500 returns were up, up and away:
Post-COVID :
1 year: up 75%
THE GREAT RECESSION:
– 1-year: up 69%
– 5-year: up 178%
– 10-year: up 306%
INTERNET BUBBLE:
– 1-year: up 34%
– 5-year: up 102%
– 10-year: up 86%
And finally for some real perspective, $100,000 invested 30 years ago in the S&P500 (with dividends reinvested) would be worth $2,154,086 today.
The only thing bigger than bursting bubbles, global pandemics and yes – even 25% tariffs – is Mr. Market.
Be like Mr. Market. Stay calm and invest on.
