You’re saving and investing for a purpose – a permanent vacation more commonly referred to as “retirement.” Many are tempted to stop their contributions when the road gets rough, but this can actually turn out to be the best time to invest.
Remember – when you’re investing in the stock market, you’re buying an ownership interest in hundreds of different companies and businesses throughout the United States and possibly even the world. In most cases, the losses that you are seeing in your account don’t mean that those companies went out of business. They are just cheaper! This is your chance to essentially buy them on sale.
Isn’t that what you attempt to do with literally everything else you buy?And history shows that the stock market does eventually rebound, and sometimes quite quickly. Plus…if you stop your contributions, you may be sacrificing your employer’s matching contributions.
The table above shows all of the bear markets since 1928, as defined by Standard & Poor’s. The returns are price returns only, not total returns, and thus do not include dividends. Past performance is no guarantee of future results. Thus, the table should not be taken as an implication of future returns. Rather, it should serve as a reminder of the past resiliency of U.S. financial markets.
Investment advisory services offered through intellicents investment solutions, inc., a federal covered investment adviser.