In our letter on June 17, 2022, we examined a rocky time in the stock market. Stocks were down 22.4%, and bonds were down 11.3%. But history whispered a hopeful message: On average, after stocks fall by 20%, they bounce back 22% the next year.

In that letter, we shared this chart – please take a look at the middle column circled in red:

Now that a year has passed since the original letter, the results are in. And the historical averages held. Stocks are up 21.3% as of yesterday. It might not feel like a big leap, but it’s a solid reminder that playing the long game pays off.

The media’s roller-coaster focus might blur this, but the numbers speak for themselves.

[chat-owl text=”OUR TAKE: The news often amplifies storms into hurricanes. Not every recession is a 2008-style crisis.“]

So, the big question that you may be asking is what to do now?

• Reevaluate: Align investments with your goals.
• Diversify: Especially in retirement.
• Stay the Course: Do you know any successful market timers?

Investing almost always feels uncertain. If it were all smooth sailing, everyone would put their money in the stock market instead of the bank.