Do Investors Get Better Returns by Staying Invested? | By Louis Perraut, CFP®

We have had many conversations with clients this year and the results have been conclusive yet again, It’s not about timing the market. It’s about time in the market.

Every year, headlines stir up fear. Whether it's inflation, interest rates, political uncertainty, tariffs, or another war in the Middle east. And each time, some investors ask: "Should I move to cash and wait this out?"

We understand the instinct. But when we step back and look at history, it becomes clear: the investors who stay disciplined and remain invested through the ups and downs consistently come out ahead.

Here’s one powerful example.

Back in 1979, mainstream media declared the stock market “dead.” Inflation was out of control, interest rates were sky-high, and the future looked bleak. The S&P 500 was trading around 108.

Fast forward to today, that same index has traded above 6,000. With dividends reinvested, the long-term average return since then has been nearly 12% per year. A $10,000 investment in that moment of fear would be worth over $1.6 million today.

And along the way? Investors faced wars, recessions, tech bubbles, pandemics, government shutdowns, and constant doomsday headlines.

The lesson is clear: short-term fear often blinds us to long-term progress.

Markets are unpredictable in the moment, but remarkably consistent over time. When you stay invested, you allow innovation, entrepreneurship, and compounding to work in your favor. You give yourself a chance to participate in the long-term growth of the economy, not just react to short-term noise.

The truth is, volatility isn’t a sign that something’s wrong. It’s simply the price of admission for long-term growth. And while it’s normal to feel uncertain during rocky markets, making big changes out of fear often does more harm than good.

So if you're feeling uneasy, know this: You don’t have to navigate it alone. That’s what we are here for. We know how hard it can be to be objective with your hard earned savings. 

Our role isn’t to guess what the market will do next. It’s to help you stay aligned with your goals, your values, and your long-term plan — no matter what the headlines say.

Let’s stay focused on what really matters: not the next 90 days, but the next 10, 20, and 30 years. Because in the long run, disciplined investors win.

Sources:
BusinessWeek: “The Death of Equities” https://ritholtz.com/1979/08/the-death-of-equities/.
S&P Historical Data (macrotrends.net) https://www.macrotrends.net/2324/sp-500-historical-chart-data
Dividend Growth X post: $10K to $1.6M with dividends https://twitter.com/DividendGrowth/status/1732151734984364319