March 23, 2020
Market volatility can be unpredictable but maintaining a long-term perspective during volatile times is important, in our view.
Remaining invested through major market events, including the global financial crisis, can be key to achieving an investor’s goals. By deploying this approach, an investment of $100,000, as illustrated in the chart below, would have reached a value of $324,019.*
However, if the investment missed just the top 10 performing days, only about 50% of that value would have been achieved. Likewise, if the investment missed the top 25 performing days, an investor would have only achieved about 25% of the value.
Staying the course through decline and recovery
Growth of $100,000 in the S&P 500® Index (January 1, 2000–December 31, 2019)*
Sources: BlackRock, Bloomberg. Morningstar as of Feb. 28, 2020. US stocks are represented by the S&P 500 Index.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal. Performance assumes reinvestment of all distributions and does not account for taxes, fees, and/or expenses.
What this means for investors
A decline in the market can be just as unpredictable as its recovery. However, staying invested and keeping a long-term perspective is important. Despite the short-term effects of market volatility, missing out on just a few top performing days could impact an investment’s full potential for growth.
*The value corresponds to the growth of $100,000 investment during timeframe noted.
Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.