“Patience is bitter, but its fruit is sweet.” ~ Aristotle
The graphic to the right shows the percentage of positive years verse negative years in the S&P 500 (500 largest companies in the United States) over different holding periods during an 88 year time span (1926-2014). As holding periods increase so too does the probability of positive returns. It’s important to remind you this period included The Great Depression, multiple wars, many tragic events, and The Great Recession. Patient investors have historically been rewarded.
Source: Ibbotson Associates. Calculations based on the total returns of the S&P 500 Index over rolling 1, 5, and 10-year periods between 1926 and 2014. Chart is for illustrative purposes only and is not representative of the future performance of any particular portfolio or security. TCA Advisor Insights 2016; Market Downturn