A Brief History of Stock Market Returns
The stock market can be an emotional place, especially for inexperienced retail investors. For many investors, the stock market is where most of their investments are allocated, and it comprises the bulk of their investment returns. Needless to say, when the market goes up and down in sometimes dramatic fashion, like a rollercoaster, it can be stressful -- it can feel like your whole retirement is riding on that rollercoaster, up or down! To that end, Kyle walks through some basic, yet surprising, facts and figures about the stock market (which is really the S&P 500 index in most cases), including how often the market has down years.
Kyle also discusses how successful investors manage their emotions about their investments, and how a good advisor can help you stay on course when the market is volatile and fear and anxiety run high. The most important takeaway? Staying invested pays off in the long run. The biggest mistake investors make is pulling their money out of the market when circumstances look (or rather, feel) bad, with the idea that waiting until conditions improve to reinvest will save them from losing money. This is also known as timing the market, and it doesn't work out for most people in the long run. Sticking with your strategy and ignoring the day to day vicissitudes of the market pays off, and as Kyle notes in the first half of the podcast, has earned steady, reliable average returns for over a hundred years now.
Connect with Kyle
Email: kyle@murphyfingroup.com [kyle@murphyfingroup.com]
Web: https://www.murphyfingroup.com [https://www.murphyfingroup.com]
LinkedIn: https://www.linkedin.com/in/kyle-martin-cfp®-aams®-05033352 [https://www.linkedin.com/in/kyle-martin-cfp%C2%AE-aams%C2%AE-05033352]
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