Volatility: A Historical Perspective

Corporate - 9 avril 2025

Volatility: A Historical Perspective

Investors have a short memory when it comes to extreme market volatility.

Sharp, broad-market losses can feel bottomless in the moment, but we often forget about them just weeks – or years – later as markets recover.

Black Monday. The Dot Com Bubble. The U.S. Financial Crisis. Each of these events erased between 25% and 45% of the stock market’s value – yet you’d be hard-pressed to spot them just by glancing at a long-term chart. In each case, investors who chose to wait out the volatility are far better off today than they would have been had they sold in a panic.

To understand why it’s so important to maintain a long-term perspective, look at how markets recovered from some of the most volatile periods over the past 57 years.

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