There’s Always a “Reason to Sell”. But Should You?
Since September 29, 1989, the S&P 500 has posted a 2,390% total return (including dividends). Put differently, the index has grown an average of 9.91% each year for over 30 years (up to October 3rd, 2023). While there have been a number of events that have led to significant declines, the market continued to climb higher over time.
During steep drawdowns, investors are thinking of one thing: capital preservation. We see emotions running high, with some clients life savings or retirement at stake. In these moments, we want to encourage you to Zoom Out and look at all of the previous 'reasons to sell'. It the past, it would have always been costly to let your temporary emotions drive your decisions.
Investment decisions should not be based on this material since the information contained here is a singular update, and prudent investment decisions require the analysis of a much broader collection of facts and context. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The opinions expressed are as of the date published and may change without notice. Any forward-looking statements are based on assumptions, may not materialize, and are subject to revision. All economic and performance information is historical and not indicative of future results. Investors cannot directly invest in unmanaged indices. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards.
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The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. No recommendation should be inferred from any information presented in this article. A diversified portfolio does not assure a profit or protect against loss in a declining market.