In Like a Lion - March 6, 2019
As we enter March, we are coming up on the 10-year anniversary of the bull market. In the depths of the Great Recession, the S&P 500 Index1 bottomed at 676.53 on March 9, 2009 (S&P DJ Indices).
The S&P 500 Index closed at 2,792.81 on March 4.
- The index is up 312% over the period.
- The annualized total return (includes reinvested dividends) is 17.7% (S&P DJ Indices).
The annualized return is impressive, but stocks never move in a straight line. Lest we forget, the last ten years have included six market pullbacks ranging from 10-20% (St. Louis Fed Reserve).
Those who adhered to a holistic approach that incorporates a diversified stock portfolio have been reward.
While it’s hard to imagine a scenario in which stocks continue at the same pace over the next 10 years, historically stocks have been an integral component in a long-term approach.
We won’t try to call the next recession or bear market. We don’t believe anyone can consistently pick the tops and bottoms. Hence, “Time in the market, not timing the market,” becomes a powerful tool that creates wealth.
An individually-crafted, well-diversified financial plan is the vehicle that puts you on the path toward your financial goals.
If you have a solid plan, we applaud you. You have chosen the narrow, less traveled path.