Why This Time Isn’t Different

When uncertainty arises, a common phrase from investors tends to be repeated: “This time is different.” Is it?

When investors start to worry about the direction of the market, they often consider significantly reducing their stock allocation. Historically, 29% of calendar quarters have been negative for the S&P 500, making short-term market declines a reasonable concern. However, despite periodic downturns — including the 2008-2009 financial crisis, the early stages of COVID-19 in 2020, and various election years — stocks have consistently outperformed cash over the long run. While some investors may believe “this time is different,” the reality is that corporate earnings tend to grow, innovation persists, and the market delivers strong long-term returns. If you have questions about making changes to your portfolio, please reach out to us.

Beacon Hill Private Wealth is an independent, fee-only, fiduciary investment advisor providing evidence-based wealth planning solutions that simplify our clients' financial lives. Founder Tom Geoghegan, CFP®, CIMA®, CPWA®, RMA® is also a member of the National Association of Personal Financial Advisors (NAPFA).      

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