Last Thursday marked the 14th anniversary of the major market bottom of our times, at the height of the global financial crisis in March 2009. Sentiment was apocalyptic then, but stocks were about to take off and not look back.
Despite 2022′s bear market, the S&P 500 is up by 490 per cent since then, notes Bespoke Investment, or 13.5 per cent annualised. The figures would be even stronger if one included dividends.
Indeed, investors would also have done well if they bought at October 2007′s major market peak. All hell broke loose soon afterwards as stocks more than halved, but investors who held tight are today sitting on a gain of 155 per cent, notes Bespoke, or 6.3 per cent annualised.
Add in dividends and that rises to about 250 per cent, or 8.5 per cent annualised.
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Outside the US, of course, returns have been much poorer. Nevertheless, investors should take heart; time usually heals even the worst market wounds.
