Navigating the Markets

Timely insights and resources to help handle market ups and downs.

Invested for the Long Term

Corrections are normal and we are prepared for them. On average, investors should expect:

  • Three 5% pullbacks per year
  • One 10% correction per year
  • One 20% correction every three years

For certain periods during these fluctuations, the market has delivered losses. But over the long term, the stock market has trended upward, repeatedly recovering from the disruptive but ultimately short-term effects of economic crises and major world events.

Using historical data, the charts below illustrate the positive outcomes of staying invested long term, along with the opportunities missed by leaving the market for even a short amount of time.

It has paid to stay invested in U.S. stocks during troubled times.
Subsequent 5-year returnsMay 1932July 1982December 1994March 2009Most DramaticFed Tighteningin Past 20 YearsSevereRecessionGreatRecessionGreatDepression267%367%251%178%
Being on the sidelines has its costs

Missing just five of the market's best days could cost your clients more than $200,000.

All daysMissing best5 daysMissing best10 daysMissing best30 daysMissing best50 days$615,363$398,407$296,743$117,509$54,174$600,000$300,000$0

Address Volatility with Comprehensive Risk Management

An effective risk management strategy can provide peace of mind.

Given the markets' potential ups and downs, effectively measuring and managing risk is essential. Market changes can impact portfolios differently and having a robust system in place to assess risk can provide you with confidence.

Fidelity's portfolio managers and research analysts perform daily, weekly, monthly, and annual risk management analyses of investment strategies to stay ahead of market fluctuations. This comprehensive risk management program can help to uncover potential risks by utilizing Fidelity's research and proprietary tools.

 

Point-in-Time Forecast Risk Factor Exposures

Allows for real-time portfolio risk monitoring and analysis

Proprietary Technology Tools

Real-time access to risk measures and exposures allow for detailed analysis and continuous refinement

Corporate Governance Research

Combines the best of corporate governance and forensic accounting research by providing a thorough review of various companies/issues

Explore More Insights and Resources

Fidelity is a pioneer in thought leadership, working continually to create meaningful material that can help you grow and maintain your business.

 
 

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