Since the start of the COVID pandemic (Jan 2020) the S&P 500 has provided a total return (inclusive of dividends) of roughly 28%.  That’s about 10%/yr and on par with the average annual ROR of the index.

 

That’s some forest! . . . and yet many people are hyperfocused on individual trees:

  • lockdowns
  • supply chain
  • inflation
  • labor shortages
  • Russia/Ukraine

What about that 28%?  Here’s some interesting data:

  • From Feb 2020 to Mar 2020 the S&P 500 fell over 30% from peak to trough.
  • From the Mar 2020 lows to the end of 2021 the S&P 500 gained 120%.
  • YTD the S&P 500 is down almost 24%.

That’s a wild ride.

The lesson?  Following market movements and political/economic headlines day-to-day, month-to-month and year-to-year are a distraction.

Slow and steady wins the race – and with less agita.

#TortoiseHare