Past performance is not indicative of the future. This discussion is not intended as specific
advice for any particular investor, but is intended for general education purposes only.
Investors should consult with a qualified financial professional. All other DRWFinancial.com disclaimers apply.
But the larger picture is a little more positive, and a little more interesting. This chart shows the percentage price change in the S&P 500 over the last 10 years (3/22/2003 - 3/22/2013):
A few potential takeaways from this look at the market:
- The stock market can be volatile, with large swings in price and overall performance
- At least in the case of the last 5 - 10 years, holding on to an investment in the index through the turbulence proved preferable to selling at the lows
- A prudent investment philosophy likely involves a detailed consideration of the individual investor's time horizon (how long they can be invested), risk tolerance (how much volatility and potential for loss they can stomach), and plan for diversification (the overall mix of investment options within the portfolio to match their time horizon and risk tolerance)