Market volatility is normal

Don't let short-term market events drive long-term investment decisions.

Market fluctuations are inevitable. Despite historical events that have shaken markets over the past 30-plus years, the stock market has continued to rise over time.

Over time, the market has grown through challenging events*

Line chart shows how the S and P 500 Index has performed over the past 30+ years, despite historical events that negatively impacted the market. Events referenced include Black Monday in 1987, the U.S. Savings & Loan Crisis in 1990, the Persian Gulf War in 1991, the Dot-Com Bubble in the early 2000's, 9/11, the Iraq War in 2003, the Global Financial crisis beginning in 2008, Sovereign Debt Crisis beginning in 2011, Greece's bankruptcy, the Fiscal Cliff in 2014, Brexit in 2016, and COVID-19 in 2020. This shows how stocks have grown over the long-term, despite short-term market volatility.

Source: Fidelity Investments, Bloomberg Finance, L.P., January 1, 1985–March 31, 2020.

It's important to remember that when these moments of volatility arise, keeping a long-term perspective is vital. For example, historically, the US stock market has finished with a gain on only 53% of single trading days.* However, looking at full calendar years, the stock market has been up 73% of years over this same timeframe.*

We believe that patient investors are often rewarded when they stick with their investment strategy. By staying invested through periods of market volatility, investors have ultimately seen their portfolios grow over the long term.