Riding out the Storm

Stocks are generally regarded as assets that are intended for long-term investment purposes, primarily because they frequently undergo fluctuations in worth, which can result in decreases of around 10% to 20% or even more within a brief period. By retaining their investments over numerous years or possibly even decades, investors can navigate through these various ups and downs with the objective of attaining superior long-term profits.

Reflecting on historical stock market performance dating back to the 1920s, it becomes evident that individuals have seldom faced financial losses when opting for long-term investment in the S&P 500 index. Despite significant adversities like the Great Depression, Black Monday, the tech bubble, and the financial crisis, those who stayed invested in the S&P 500 for two decades continuously would have typically seen positive returns on their investments.

While past results are no guarantee of future returns, it does suggest that long-term investing in stocks generally yields positive results if given enough time. It's important to stay informed about market trends and fluctuations to make informed decisions that align with your investment goals.