Throughout the week, I read dozens of articles on finance, law, economics and investing. I would like to compile some thoughts on those articles into a one minute read, to be published each Monday. Sometimes I will use the whole minute on one article, and other times I will spread it around.

Get your timer ready:

This Business Insider article has many good charts on how the S&P 500 has performed, peak to trough, trough to peak, and over the long-term. If you are a buy-and-hold investor, then riding out the market ebbs and flows results in a decent return on average. That’s something we all know, but the charts help illustrate the point and can help calm a panicked investor.

The below chart in the article, however, is what really caught my attention.

stock market drop chart

This chart goes back to one of my first articles about market prognostications, how many of them are useless, and that year-in and year-out, there are almost always good opportunities to invest. Of course, if the U.S. stock market is in a bubble or near a peak, then a 10% drop doesn’t solve that problem, but combining value investing with momentum investing is a good way to try to average into the market over the long-run and take advantage of these opportunities.

-Richard

Disclaimer