Staying the Course for Decades

Long-term investing works only if you stay invested through the scary parts. Here are real numbers on what missing the market’s best days cost, and habits that help you hold on.

Declines are normal

Over a lifetime of investing, you will see many declines of 10% or more, several bear markets of 20% or more, and probably a crash or two. In our price data, the S&P 500 fund fell about 56.5% from October 2007 to March 2009, about 34% in five weeks in early 2020 and about 25% in 2022. Each time, it later went on to new highs.

A real chart: SPY monthly bars, 2006 to 2026, price only, with major declines marked. Past performance does not predict future results.

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The rest of this lesson, its chart examples and quiz are part of Investing School. Start free with Stock Market Fundamentals and the first lesson in every category.