One Year Returns Don’t Matter
Ben Carlson has put together a chart displaying how long-term market returns vary slightly, but we observe a wide dispersion in short-term returns.
Returns in any given year are all over the show but 30-year returns don’t change all that much over time.
Long-term minded investors with discipline harvested decent returns as a reward for their patience.
Short-term minded investors on average had terrible experiences and not-so-good returns. They did not get the reward but were left with many scars.
Long-term returns are the only ones that matter but you have to get through a series of short-term emotions to get there.
Sources
*“ Adapted from: “One Year Returns Don’t Matter”, Ben Carlson, awealthofcommonsense.com, 30 Jul 2023