During the 2008 financial crisis—from the market’s peak in October 2007 to its bottom in March 2009, the S&P 500® experienced more than a 50% drop in value.1 Not surprisingly, a great many people panicked upon seeing their account balances (a lifetime’s worth of savings) decimated. Deciding to “cut their losses,” they sold their stocks and moved to the safety of low-yield investments such as Treasury bills and CDs. Over the following decade, however, the market proceeded to deliver a cumulative return that exceeded 400%!
