Broker Check

The Benefit of Long Term Investing

| February 05, 2016

Yogi Berra may have said it best, “It's tough to make predictions, especially about the future.”

Did you see it coming? Many people didn’t. We’re talking about the not so Happy New Year stock market selloff - the worst start in U.S. stock market history. The combination of bad news about the slowing Chinese economy, dropping Brent crude oil prices, and attempts by the Chinese government to prop up the valuation of the Yuen caused great uncertainty in the China stock market. And the ripple was felt around the world.

The Benefit of Long Term Investing
Historical Returns of the S&P 500 Index
50 Years of Data (1966-2015)

Time Frame

Positive Returns

Negative Returns




1 year



5 Years



10 Years



Sourced from BTN Research and Returns 2.0

What should you do now? Since stock market performance is unpredictable, trying to “outsmart” the markets will likely result in actual losses (vs. paper losses), especially when attempted in the short term. History tells us the markets provide positive gains most of the time, especially over longer time periods, why not stay invested and avoid probable mistakes in the short term? Here are some stock market facts that support the benefit of being a long term investor.