As this chart shows, markets have experienced material corrections every ten years or so since 1926, indicated on the chart in red. These tend to be relatively brief (averaging about 16 months) and shallow (averaging approximately 40% from top to the bottom of the market) but are followed by long periods of positive returns as indicated on the chart in blue. We don’t believe that there is any reliable or consistent way to pick the tops or the bottoms, so we advise our clients to stay invested through these periods so as not to miss out on the gains which historically have always been far greater than the losses.
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