Unlock Bigger Gains: A Comprehensive Look at Recent Market PULLBACKs

In recent months, the stock market has experienced a significant pullback, leaving some investors worried about the future. But while this volatile period may have been unnerving in the short-term, looking at the market in a longer-term context can put it into perspective.

When examined in the context of the last five years, the recent market pullback doesn’t even register. Since the start of 2015, the S&P 500 index has seen an overall impressive return of 41%. This means that the pullback is little more than a blip on the long-term trend.

Focusing on the long-term performance of the stock market has several benefits for investors. Firstly, short-term volatility becomes easier to ignore as investors can be more confident in their long-term holdings. Seasoned investors can also take individual stocks and funds they have identified to be suitable investments in the long-term and not allow the pullback to distract them from their chosen investments.

Though a market pullback can certainly feel extreme in the short-term, taking a long-term view on the market enables investors to focus on returns beyond the last few weeks. Understanding the context of the current pullback can provide a valuable insight that puts it into perspective, and can help to steadying nerves as investors move forward.