The case for staying invested
Missing a handful of the market's best days can significantly reduce investment returns.
When markets fall, we understand that seeing your investments lose value can feel stressful. In fact, some investors may be tempted to abandon their investment strategy when markets become rocky. However, trying to time the markets can result in missing out on gains.
For example, an investment of $10,000 in the S&P 500® Index in 1980 would have grown to a value of $697,421 by 2020. Yet, missing out on even a handful of the best days over that period would have greatly reduced the portfolio's value.
Hypothetical growth of $10,000 invested in S&P 500 Index
January 1, 1980–March 31, 2020
We're here to help you through challenges when market volatility occurs. Backed by deep research and experience, we remain patient and disciplined through periods of market distress. By taking a long-term view, investors who stay invested may have a better chance of reaching their financial goals.
- Don't limit growth potential with cash (PDF)
- Diversification Can Help Reduce Individual Asset Class Risk (PDF)
- Investing through the Business Cycle (PDF)
- Managing Client Accounts Through Recessions (PDF)
As shown below, significant gains in the stock market have often occurred following some steep declines. Investors who abandon their strategy during a market downturn may miss out on those gains. By taking a long-term view, investors who stay invested may have a better chance of reaching their financial goals.
S&P 500 Index Five-Year Returns from Market Lows
January 1, 1985–March 31, 2020
We're here to help you through challenges when market volatility occurs. Backed by deep research and experience, we remain patient and disciplined through periods of market distress.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Optional investment management services provided for a fee through Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser and a Fidelity Investments company. Discretionary portfolio management provided by its affiliate, Strategic Advisers LLC, a registered investment adviser. These services are provided for a fee.
Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, Strategic Advisers, FPTC, FBS, and NFS are Fidelity Investments companies.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917