4 Things You Need to Know about Market Volatility
By Steven Higgins, Financial Advisor, Principal & Allison Schmidt, Financial Advisor, CPA, CFP®
- Par for the Course – On average, declines of 5% or more happen about 3 times a year and declines of 10% or more occur about once a year.*
- Through the Thick and Thin – From 1980 through 2017, the S&P 500 has returned 30 positive years and 7 negative years with a total return of +2,380%. $10,000 invested in 1980 is worth almost $238,000 today.**
- More Normal than Not – Of the 30 positive years in the S&P 500 since 1980, 28 years saw declines during the year of at least 5%.***
- Ace this Midterm – Since 1945 there have been 18 midterm elections. The S&P 500 has posted a positive return in each of the years following the previous 18 mid term elections. The average gain was 19.13%.***
*Source: ycharts.com
**Source: Bloomberg
***Source: First Trust Portfolios
Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advice offered through HD Wealth Strategies, a registered investment advisor and separate entity from LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
