Market corrections - even recessions - are a normal, though unpleasant, part of a market cycle. While it's uncomfortable to watch our portfolio values drop, and you might be tempted tomake changes in an effort to limit your losses, our suggestion continues to be STICK TO THE PLAN. Because we know that things like this can and WILL happen, our investment committee works continually and systematically to ensure that we have a high level of conviction around all of the funds in your portfolio.
Making changes for the wrong reasons can hurt performance
This illustration demonstrates why we ask you to remember that markets are usually cyclical, and we encourage you to remember your long-term strategy.
Hypothetical growth of $10,000 invested in the S&P 500 Index from 1/1/1998 to 12/31/2019
If you had invested $10,000 in the S&P 500 Index from January 1,1988 to December 31, 2019 you’d have $265,240.
However, if you had pulled out of the market for whatever reason and missed just the best 5 days in 31 years - you would have only $175,959.
If you missed the best 50 days – only the best 50 days out of those 31 years – you would ONLY have $25,407.
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Raymond James Financial Advisors do not render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
This content is developed from sources believed to be providing accurate information. This content is for general information only and is not intended to provide specific advice, an endorsement, or recommendations for any individual. Past performance is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk, including possible loss of principal. No strategy assures success or protects against loss. To determine what is appropriate for you, consult a qualified professional.