US stocks continued to move higher last week on the news of positive initial results from Pfizer regarding their COVID-19 vaccine. The S&P 500 index traded up 2% for the week, pushing the year-to-date return to 13% and moving the index to near all-time highs.
The equity markets reached its low point earlier this year on March 23 after dropping more than 30%. Since then, an incredible rally of 64% has taken place. In other words, an investor who began the year with a hypothetical $100,000 in the S&P 500 would have been left with approximately $70,000 had they sold in the depths of the March decline. Conversely, an investor who stuck with their initial investment would have approximately $113,000 today.
Markets are very difficult to predict in the short-term, but in the long run the path of equities has historically been higher. The chart below highlights in red the largest decline of the S&P 500 index during each of the last 40 calendar years. Despite average declines of nearly 14%, the index provided investors with a positive return in 30 of those years. We encourage our clients to remain focused on their long-term goals and avoid drastic portfolio changes based on shorter-term news.
Key Economic Releases This Week
Asset Class Returns
Prices & Interest Rates
 Source: Morningstar
Past performance may not be representative of future results. All investments are subject to loss. Forecasts regarding the market or economy are subject to a wide range of possible outcomes. The views presented in this market update may prove to be inaccurate for a variety of factors. These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data. Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.