Buying and Holding in a Volatile Market
Dear Clients and Friends:
People who are overcome by fear and panic because of a market decline will often make the mistake of liquidating their investments amid the decline. Those who have the resilience to hold their investments regardless of fluctuations in the market will reap the benefits of a higher return over the long run as opposed to those who panic and sell during a decline. The graphic entitled “Annual Returns and Intra-Year Declines” shows that even though the stock market (as measured by the S&P 500) is volatile and had average intra-year declines of 14.1% between 1980 and 2016, investors who held their investments despite the volatility earned an average annual return of 8.5%. Click here to view the graphic. Read more