The battle of blue vs red continues... No, we are not talking politics -- we are talking stock market performance!
The chart below is one of our favorites, showing the historical performance of the S&P 500 Index, highlighting periods when the market was rising ("bull markets" in blue) and falling ("bear markets" in red). Bear markets are defined as peak-to-trough downturns of 20% or greater from new index highs, while bull markets are increases from the trough through the next new index high.
The takeaway -- there is lots more blue than red! Good times for the market have been disproportionately longer than the bad times. While the chart does not reflect the current downturn, we think it provides a valuable lesson as we navigate a challenging time. Long term investors are rewarded for staying disciplined.
S&P 500 Index Total Returns