As the S&P500 recovers from a recent correction we have an opportunity to review the risk vs return of stocks.
Last year, the S&P500 finished up 24.9% with a drawdown of 8.5% – That’s a swing of 33.4%! This year the index fell approximately 20% before rebounding, but of course, we don’t know how this calendar year will actually end.
Such times can present difficulties for most people who don’t have the skills, the time, nor the inclination to manage their investment portfolio. Given these risks people need a plan to stay invested and enjoy the rewards of equity ownership.
That’s why we are here to help you select appropriate portfolio allocations and recommend experienced fund managers who are industry leaders with solid track records to navigate financial markets on your behalf.
The risk vs reward of the S&P500 over 75 years is provided in the chart below:
Please note:
- Every year experiences volatility
- Many drawdowns are significant and last longer than a year
- Markets rise over the long-term
- People need a plan to manage risk
