Sudden market downturns can be unsettling. But historically, US equity returns following sharp downturns have, on average, been positive.
Sticking with your plan helps put you in the best position to capture the recovery.
(1) The average annualized returns for the five-year period after 10% declines were 9.33%; after 20% declines, 9.66%; and after 30% declines, 7.18%.
This post was prepared and first distributed by Dimensional Fund Advisors.
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Let’s take a look at five of the most common financial adages and review why they are often much easier said than done.