Don’t Be Fooled By The Hype

Keep your eye on the big picture.

A look back through Time confirms the inevitable. Markets fluctuate. Neither bull nor bear markets last forever. So when markets get rough, you shouldn't jump ship. Short-term worries may not be a good indicator of where the markets are headed. Historically, investors who stay the course have been rewarded for their patience.

Cumulative total returns of the S&P 500 (%)


Sources: Standard & Poor’s, a division of the McGraw-Hill Companies, Inc.; GPW (Legg Mason internal system); and Morningstar Direct.

Past performance is no guarantee of future results. This chart is for illustrative purposes only and is not indicative of performance of any specific investment. All investments involve risks, including loss of principal. Please note that an investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. This chart illustrates the historical performance of the Standard & Poor’s 500 Index (S&P 500) before and after the bear market bottoms of October 3, 1974, December 4, 1987, October 9, 2002, and March 9, 2009. Cumulative total returns include reinvestment of dividends and capital gains. The S&P 500 Index is an unmanaged index of 500 stocks that is generally a representation of the performance of larger companies in the U.S.

 

Everything old is news again.

Today’s economic worries may feel like something new, but the last four decades of TIME Magazine covers shows that they are not unprecedented, and that markets recover over time. It’s wise to keep faith and continue to make contributions through the cyclical ups and downs. Missing just the top 10 days of the S&P 500 lowers your performance by almost half! Over the long term, staying committed to your investment plans may allow you to be well-positioned to reach your goals.
 

Market returns (%)

S&P 500 Index from January 2, 1996–December 31, 2015

 


Source: Morningstar Direct.

All investments involve risks, including loss of principal. The chart provided is for illustrative purposes only and represents an unmanaged index in which investors cannot directly invest. Past performance is no guarantee of future results. This chart is for illustrative purposes only and is not indicative of past or future performance of any specific investment.

 

Don’t panic. Trust your “designated decision maker.”

When you’re influenced by emotions, you can make impulsive and irrational decisions that can compromise the achievement of your objectives. It’s best to turn to your financial advisor for levelheaded perspective and guidance on the situation at hand, and how it relates to your individual investment needs and strategy.

Learn more about staying focused and staying invested during market disruption.
 


Learning from the Lessons of TIME Brochure

Uses covers from TIME Magazine from the past four decades to illustrate that although today's economic worries may feel like something new, a look back at history shows that they are not unprecedented...and that bear markets don't last forever.



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Brochure

Learning from the Lessons of TIME Brochure

Uses covers from TIME Magazine from the past four decades to illustrate that although today's economic worries may feel like something new, a look back at history shows that they are not unprecedented...and that bear markets don't last forever.

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