ARE YOU A CONFIDENT INVESTOR?

Are you a confident investor?

If you are like most people, you are not.

This lack of confidence comes from a lack of knowledge and a lack of experience.

And it is a big problem for 401K investors. The lack of confidence leads to a lack of patience which, in turn, leads to bad investment decisions.

Through our ongoing training and education, we plan to increase your confidence.

Today, I want to share the chart of the rolling 30-year average annual returns of the S&P 500 starting in 2002 and running through the end of 2022. I would expect that this chart would give you quite a bit of confidence to invest in the S&P 500 index for the long term. Look at the consistency.

The average of all of these rolling 30-year time periods is 10.1%. The lowest 30-year result was 8.8% in 2002 and the highest result was 11.8% in 2004. In most years, the 30-year results were within 0.6% of the average. The line is amazingly consistent.

All investors should be investing for the long term. As a long-term investor, hopefully this chart shows you why I am so confident that you can earn 9% to 10% per year in your 401K. And it is important to note that the time period of this analysis began in 1973. So, it includes the horrible bear markets of the 1973, 2001 and 2008. Like all fifty-year views of the stock market, it includes lots of down time periods and lots of up time periods.

This view of performance highlights one of the many thinking problems for most investors. Most investors overreact to the wild short-term swings of the stock market. This leads to emotional investing decisions which end up being bad investing decisions.

Does this data surprise you? Does it change the way you think about investing your 401K savings?

Happy Investing,

Phil

---

Disclaimers The Beyond Buy & Hold newsletter is published and provided for informational and entertainment purposes only. We are not advising, and will not advise you personally, concerning the nature, potential, value, or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Beyond Buy & Hold recommends you consult a licensed or registered professional before making any investment decision.

Investing in the financial products discussed in the Newsletter involves risk. Trading in such securities can result in immediate and substantial losses of the capital invested. Past performance is not necessarily indicative of future results. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, and market dynamics.