Active Markets
Staying invested even when markets are volatile can serve investors well
History shows that some of the market's best days occur shortly after bad days.
By staying fully invested over the past 15 years, an investment of would have earned more than someone who missed the market's 10 best days.
Test your own investment amount:
$10,000 invested in the S&P 500 (12/31/07–12/31/22)
Data is historical. Past performance is not a guarantee of future results. The best time to invest assumes shares are bought when market prices are low.
Data is historical. Past performance is not a guarantee of future results. The best time to invest assumes shares are bought when market prices are low.
By trying to predict the best time to buy and sell, you may miss the market's biggest gains.
The U.S. stock market has been resilient throughout its history. Stocks routinely recovered from short-term crisis events to move higher over longer time periods.
- 1. The collapse of Lehman Brothers in September 2008 triggered a severe market downturn and recession. Within a year, stocks had recovered significantly.
- 2. The market declined sharply in 2011 when Standard & Poor's downgraded the U.S. credit rating, but rallied soon after.
- 3. In June 2016, U.S. stock prices plummeted more than 5% in the two days after the Brexit referendum, followed by a dramatic three-day recovery.
- 4. The S&P 500 tumbled more than 10% on fears of a Fed policy error and a U.S.–China trade war in the fourth quarter of 2018.
Data is historical. Past performance is not a guarantee of future results. The best time to invest assumes shares are bought when market prices are low.
Markets recover from crises
A major crisis that causes the stock market to drop in value can be unsettling, but does not spell the end for markets or investment strategies. History has shown that markets bounce back, and that staying invested through volatile episodes lets you benefit from a rebound.
Market rebounds outlasted declines
Since 1949, the market has spent longer periods rising (49 months on average) than falling. While it is impossible to predict when a market recovery will begin, it is possible to miss one by waiting on the sidelines.
Time, not timing, is the best way to capitalize on stock market gains
The U.S. stock market has been resilient throughout its history. Stocks routinely recovered from short-term crisis events to move higher over longer time periods. By trying to predict the best time to buy and sell, you may miss the market’s biggest gains.
Economic moats | Active investors seek wider moats
Economic moats, also called business moats, are competitive advantages that help a company maintain long-term profits and market share over competitors.
How an active core strategy can benefit equity investors
An active core strategy backed by fundamental, sector-based research has demonstrated impressive long-term performance versus passive strategies.
ESG: Hearing the signal above the noise
In our view, the best opportunities lie not at the extremes of ESG rhetoric, but at the heart of sustainability substance.