The Price of Long-Term Investing

A USD 10,000 investment in the US stock market in 1990 would be worth USD 324,808 today. This remarkable return, however, came at a cost: significant drawdowns along the way. The most severe declines occurred during the dot-com bubble and the Global Financial Crisis. Even five years ago, at the height of the pandemic, the S&P 500 plunged by 34%.

The key takeaway? While market downturns can be painful in the moment, they are an inherent part of the long-term investor’s journey—and ultimately, the price of success in equities.