Please note all below figures are unadjusted for inflation.

Since 1950 the average maximum intra-year low for the S&P 500 has been 13.5%.  This means that if you had bought the S&P 500 on January 1st of any given year the S&P 500 would on average be down by 13.5% at some point during the year.

 

Since 1950 the average annual return for the S&P 500 has been 7.6%.  It would be 11.1% if dividends were reinvested.

Much like turbulence must be accepted as the price paid when flying market selloffs are a normal and necessary part of investing.  And much like the airplane that arrives at its destination despite the turbulence so too does the long-term investor earn a positive ROR despite down markets.

In short if you’re going to be a stock market investor you must be prepared to tighten your seatbelt and hold on during the bumpy parts of the ride because no one will give you a parachute mid-flight.