Risk Goes Down Over Time

Depending on the time frame you are referencing, the Stock Market return has been great, horrible or something in between. It’s important to understand, time can be considered a diversifier similar to diversifying across different assets and securities. Being invested across many different types of securities and across several asset classes is akin to using time to reduce risk, risk goes down with time.

It’s important to keep Stock Market returns and Time in perspective.

In less than a month the Stock Market is up over 27% from the recent bottom.

Stock market return under one month

Over the last 3 months the Stock Market is down about -13%.

Stock market return over three months

Over the last year the Stock Market is essentially flat.

One year stock market return

The Stock Market is up almost 50% in the last 5 years.

Five year stock market return

In 10 years the Stock Market is up over 190%.

Ten year stock market return
Stock Market Returns <1 month, 1 year, 5year, 10 year.pdf

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