IT has been either a terrible time or a great time to be owning stocks. A lot depends on when you started investing.
Last year, the S&P 500 index sank 19.4 per cent, marking its worst performance since 2008. Investors who put in their money at the start of 2022 would be understandably distraught.
Yet, if you lengthen your time horizon, the returns look vastly different.
Between 2018 and 2022, the S&P 500 rose by a compounded annual growth rate (CAGR) of 9.5 per cent per year, fairly close to the index’s long-term average return of 10 per cent a year.
Similarly, the lessons you learn from the past 12 months are very different from the conclusions you draw from events that happened years or decades...
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