Stock investments are best for longer-term investors, usually those who have at least 5 to 10 years before needing access to their investment – so maintaining a long-term focus in regard to market activity is critical.

Here are some key facts about the stock market that can help put short-term volatility in perspective:

• Over time, stocks have historically outperformed all other asset classes, even though they have also been the most volatile asset class as well.
  
  

  Growth of a $1 investment.© Stocks, Bonds, Bills and Inflation, Ibbotson Associates, Chicago. Used with permission. All rights reserved. Stocks are represented by the S&P 500 Index. Bonds are represented by the average return of long-term corporate bonds (with a maturity near 20 years). T-bills are represented by 30-day Treasury notes. Inflation is represented by the Consumer Price Index which is an index of the cost of goods and services to the typical consumer as determined by a monthly survey of the U.S. Bureau of Labor Statistics. For illustrative purposes only. Actual investments cannot be made in an index. Past performance does not guarantee future results.

  
  
• Historically, bull markets have outlasted bear markets in both duration and magnitude.
  
  

• Recovery from a falling market is usually swift. On average, 75% of the loss is recouped in seven months, with full recovery in just over a year.*
• Bear markets are often followed by strong rallies – which you could miss if you sell out of the market during its decline.*
• Lower prices give you the chance to buy stocks on sale. Your dollars buy more shares when prices are low. That may not seem so great at the time, but you’ll be happy to have those extra shares if prices rebound!

* Source: David L. Babson & Co. Statistics since 1953. Past performance does not guarantee future results.