Long-Term Investors Can Weather Market Declines – American Funds – 01/01/15

Long-Term Investors Can Weather Market Declines

Intrayear declines in the S&P 500 since 1946 have averaged 13.9%, yet annual price returns have been positive in 49 of those 69 calendar years.

Intrayear gain and decline reflect largest price changes within each year. S&P 500 annual returns are based on the price index only and, therefore, do not include dividends. Average frequency of declines, as shown in the table, assumes 50% recovery of lost value. The index is unmanaged and, therefore, has no expenses. Past results are not predictive of results in future periods.

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