What the History of Stock Market Returns Has Taught Us
Are you an optimist or pessimist?
When it comes to investing, this chart is the simplest illustration of which side we believe you should be on.
Since 1926, the market has been up about 73% of the years.1
So I ask you: do you want to spend all of your time worrying about when that 27% chance of a down year is going to occur?
Or do you want to position your investments to take advantage of the good times that happen 73% of the time?
Focusing on the long-term and investing in a broadly diversified portfolio of innovative and financially sound companies can put you in that position.
Your investment thesis becomes simple. You believe, on average, the CEOs and employees at those companies will solve the problems in front of them and innovate for a better future.
You know down years will happen, but when they do happen, you’ll remember the plan you have in place so you won’t flinch.
In fact, when the market is down you’ll notice that the basket of companies you own have just gone “on sale.” You can buy those same companies at a discount and hold onto them for when the good times come.
All the while you’ve gotten off the hamster wheel everyone else is on—trying to constantly find the next “get rich quick” scheme or trying to time the market.
And you can instead focus your time and energy on the things you love.
Author: Calvin McKenney
Cal is a financial advisor at Fortune Financial in Minnetonka, Minn. When you work with Cal, you receive a lifelong ally who is committed to listening to you, researching your options, weighing tried and true methods with the latest strategies, and finally, empowering you to make a decision that supports your overall wellbeing.
1.As of Dec. 31, 2022. Source: FactSet. Past performance is not a guarantee of future results. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any funds or stocks, nor should it be construed as a recommendation to purchase or sell a security. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested.
Cal is a registered representative and investment advisor representative of Securian Financial Services, Inc. 5705667/DOFU 7-2023