Already on ArticleSlash?

Forgot your password? Sign Up

Staying on Course - 5 Reasons to Stay Calm During Turbulent Times

 


Visitors: 233

If you look at the course of the stock market's history, staying invested over the long term has proven to be a better course than bailing out during downturns.

Although past performance is no guarantee of future results, these lessons from the S&P 500 Index are worth noting:

1. Missing a few days in the market can cost you. In a 10-year period from January 1, 1998, to December 31, 2007, if you had missed the best 20 market days, a $10,000 investment in the S&M 500 Index would be worth only $7,745. If you had stayed invested, that same amount would be worth $17,758.

2. The Height of the upturns has exceeded the depth of the downturns. The eight bear markets between 1950 and 2007 saw an average drop of 33.2%, based on the S&P 500 Index. The subsequent bull markets saw an average growth of 134.2%.

3. Stock prices have historically moved back up well before a recession ends. Historically, the S&P 500's recovery has begun on average more than five months prior to the official end of the recessions. These recoveries produced, on average, stock price gains of nearly 26% - before the recession ended.

4. Stock prices tend to recover before profits rebound. Historically, stocks have recovered on average three calendar quarters before a corresponding rebound in corporate profits. And, the average earnings rebound over the ensuing business cycle has been more than 128%.

5. Historically, the longer you stayed invested, the less likely you would have been to lose value in an investment. Since 1926, investors who held stocks for one year lost investment value 26% of the time. Five-year holding periods dropped the rate to 12%. Those who held for 10 years lost investment value 2% of the time. And, investors who owned stocks for at least 15 years did not lose any investment value.

So, when the stock market seems to be swinging on a bungee cord, you might find comfort in taking a longer view.

Ryan Farrell is the founder and administrator of http://www.FreePersonalClassifieds.com , which is a completely 100% free online dating website for personals and free classifieds.

(352)

Article Source:


 
Rate this Article: 
 
Project Managers Must Stay Calm
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

How To Be Grateful In These Turbulent Times

by: Rebekah Pierce (May 15, 2008) 
(Self Improvement/Inspirational)

Mastering the Market in Turbulent Times

by: Charles Warnock (September 14, 2008) 
(Business/Marketing)

Four Keys to Mortgage Bank Success in Turbulent Times

by: Brandan C Hadlock (July 15, 2007) 
(Finance/Loans)

Teams - 7 Essentials of Leading a Team in Turbulent Times

by: Duncan Brodie (October 21, 2008) 
(Business/Team Building)

Staying Calm Under Pressure

by: Ronnie Nijmeh (May 05, 2008) 
(Self Improvement/Stress Management)

Staying Calm When Trading

by: Shaun Rosenberg (August 10, 2008) 
(Investing/Stocks)

Transition Elegantly Through Turbulent Times to Discover Your Destiny - Peace ..

by: Paul Davis (April 15, 2008) 
(Self Improvement/Inspirational)

Discipline Your Child by Staying Calm and Learning Fast

by: Chris Malanga (July 09, 2008) 
(Home and Family/Parenting)

Retirement Planning - 7 Secrets to Staying Calm While Your 401k is Plummeting

by: Lin Schreiber (October 20, 2008) 
(Investing/Retirement Planning)

Project Managers Must Stay Calm

by: Julie Lord (May 16, 2015) 
(Business/Management)