Ride Out a Volatile Stock Market
With fears of the coronavirus and the volatile impacts that fear has had on markets and our everyday lives, I wanted to share some insight into the power of tuning out the noise and staying invested through the bear market.
This document from Franklin Templeton has a few key points that look back on historic bear markets and how the market performed after the bear market ended. The most notable takeaway is in section 1 of this attachment. The section that is bolded in the first paragraph touches on the 12 months that follow a bear market and the average 12-month rate of return of a fully invested stock portfolio returned 37.1%. If the investor missed out on the first 6 months of that recovery, their return would have been just 7.6%.