How investments can grow over the years
Here we are in the final month of 2022. Characteristically, as we travel through the holidays, many of us spend time in reflection as we close one year and get ready to enter the next.
Maybe you reflect upon your accomplishments — or challenges — or maybe you simply feel more nostalgic while anticipating the new year.
As stated by the Father of Existentialism, Søren Kierkegaard, “Life can only be understood backwards; but it must be lived forwards.”
From the perspective of financial markets, 2022 has been a turbulent year. But as any good financial advisor may tell you, staying invested despite negative news has historically been profitable. To reenforce this point, let’s reflect on news events over the past 50 years and how disciplined investors who stayed invested were rewarded in the long term.
Each time period assumes $10,000 was invested on the first day of that year and reveals what the market value of that investment would be at the end of 2021 based on the performance of the S&P 500, assuming reinvestment of all dividends and capital gains. The S&P 500 is an index that tracks the performance of the 500 largest companies listed on stock exchanges in the United States.
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