VOLATILITY AND TAIL EVENTS

ThE S&P 500 had a great performance of 32.8% in 2013 (even the ACWI* performed 22.35% for 2013).   While the market has been pretty lackluster so far into 2014 some investors are asking if the ride is over.   Perhaps looking back on history will help ease some concerns.  

The following slide is provided by AthenaInvest from the presentation "Behavioral Portfolio Investing: Emotions and Investing." 

The slide shows us that the S&P 500 is positive 72% of the time.  Much better than Vegas odds.  The other compelling aspect is the how high the returns are in positive return years than negative returns years.  This is why people invest.  They believe in the market and the opportunity it provides for us. 

Markets will always have bad years however as a long term investor you must remain patient and steadfast.  Investors who have stayed invested in the S&P 500 over the last 85 years have averaged 11.50% per year**!  Remember to stay positive and have faith in your investment strategy.  

I hope you found the above information interesting.  As always I am happy to hear your feedback (good or bad) or any questions you might have!  Feel free to respond to me.
 D
DISCLAIMERS:
1. Past performance is not indicative of future results.
2. Diversification does not guarantee profit nor is it guaranteed to protect assets.

Source:
*ACWI- All Country World Index- http://performance.morningstar.com/funds/etf/total-returns.action?t=ACWI&region=usa&culture=en-US&ownerCountry=USA
**http://bonds.about.com/od/bondinvestingstrategies/a/Stocks-And-Bonds-Year-By-Year-Total-Return-Performance.htm
 

Successful investors have to become successful savers first. 

Ty Peterson

Financial Advisor
O: 720-466-3515

D: 720-722-3505

F:  720-398-3504

 

44 Cook St Suite 100

Denver, Co 80206

www.kindredfinancial.com

Registered Representative offering securities and advisory services through Independent Financial Group, LLC (IFG), a registered broker-dealer and investment advisor. Member FINRA/SIPC. Kindred Financial and IFG are unaffiliated entities. OSJ Branch: 12671 High Bluff Dr. Suite 200 San Diego, CA 92130

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Financial Tip:
68% of employed Americans plan to work beyond age 65 - but only 25% of current retirees actually did.  
Statistics from JP Morgan "Guide to Retirement"

Market Performance 2014*:
1.8%  S&P 500
0.8%  MSCI EAFE
-0.4%  MSCI Emerging Markets
1.8%  Barclay Bond Aggregate Index

Data from JP Morgan "Market Insights"
*Year to date as of 03/31/2014

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