The case for staying invested

We at Kramer Wealth Managers want to provide some brief comments about the stock market and the volatility we have seen lately. Yes, we know it has declined quite a bit recently. We want to remind everyone that stock market volatility is normal. During these times, people often wonder if they should take their money out of the market or just leave it alone. It causes a lot of uncertainty. I want to share with you some data from JP Morgan Private Bank research.

Throughout history, from 1999 to now, there have been many times when media hype has given investors reasons for why they feel they should not invest money. Or why they should pull out of the market. If an investor had actually followed the media hype and pulled out of the market at that time, let’s look what difference would it have made?

Let’s look at some examples:

  • 1999: Y2K- Investing in the S&P 500 would have had a 467.1% return
  • 2001: 9/11- Investing in the S&P 500 would have had a 415.4% return
  • 2002: Dot Com Bubble Burst- Investing in the S&P 500 would have had a 484.9% return
  • 2008: Global Financial Crisis- Investing in the S&P 500 would have had a 310.6% return
  • 2012: Greek Bailout and Euro crisis- Investing in the S&P 500 would have had a 338.6% return
  • 2020: COVID-19 Pandemic- Investing in the S&P 500 would have had a 44.54% return

These are just a few of many examples. It is normal for people to react to and be concerned with all of the media hype and attention. But history shows that the market has always rebounded from these types of events. Of course, rebounds are never guaranteed and past performance is no indication of future results. Still, it’s good to have this historical context as you make decisions about your own investments and decide whether or not to buy into the media hype. If you want to discuss further, please feel free to contact your KWM advisor.

Adrianna Environmental B&W

Adrianna Rocha

Client Relations Representative

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.