A well-diversified portfolio is designed to help you achieve your long-term goals as well as limit your portfolio’s downs (and ups). But it doesn’t always feel good. You may get frustrated when you lose money during certain periods. The good news is that a diversified portfolio may produce a better outcome for you in the long-run.
The graphics herein help to visually explain:
- Worst days, weeks, and months for the S&P 500 since 1950
- Anatomy of bear markets
- Anatomy of bull market rebounds
- Missing the bear market bottom
- Asset class performance following bear market bottoms
- A diversified portfolio wins even though it never feels good
- Recessions and expansions
- Performance during recessions
- Performance during recessions – asset classes
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