Investing in volatile times
Is market volatility making you want to overhaul your investment strategy?
Is market volatility making you want to overhaul your investment strategy?
08/13/2024
MARKET UPDATES
08/20/2024
08/20/2024
While you may be tempted to pull money out of the stock market to avoid corrections and bear markets—like what we saw in 2022—timing the market is notoriously difficult.
Not only do you need to reduce your exposure to equities at just the right time, but you’ll also need to re-enter the market at precisely the right time as well. History has shown that you’ll typically see a sharp rebound in equity markets after periods of decline.
Following the 10 bear markets (declines of 20% or more) since 1962, the first three months after the bottom saw returns bounce back 21.47%, on average, while the first full year climbed, on average, 42.43%, as the table below illustrates:
Missing out on these recovery periods can sometimes be as painful as holding through the decline that preceded it. You may want to review how you approach building, balancing and diversifying your portfolio to make sure you don’t leave the market at a low and miss the benefits of a potential rebound.
The S&P 500® Index is a market-cap weighted index that represents the average performance of a group of 500 large-capitalization stocks.
Results shown assume reinvestment of dividends or interest.
Any indexes shown are unmanaged and do not reflect the typical costs of investing. Investors cannot invest directly in an index.
Index performance is not indicative of the performance of any Thrivent product.
Past performance is not necessarily indicative of future results.