Two Steps Forward, One Step Back for Investors
Consider everything investors have been through in recent years: a global pandemic, rapid inflation, war in Europe, and volatile stock and bond markets. It’s reasonable to feel uneasy in the face of so much uncertainty.
Now imagine it’s the end of 2019 and you know what you know now. You’re asked to predict market returns over the next three years. Will stocks be up 25%? Flat? Down 25%?
The market was up almost 25% from 2020 through 2022. That includes last year’s 19% decline. Too often, people look only at year-by-year returns and don’t look at the total history of returns, which can be very informative.