We live in an era where access to financial markets has never been easier or more democratic. And yet, fear still dominates the decisions of many investors—or worse, those who avoid investing altogether.
You don’t need complex formulas or crystal-ball predictions to navigate this world. Sometimes, just three simple data points can radically shift your perspective. Not only do they show what the market has done—they also reflect how human behavior reacts to it.
Here are three essential truths every investor should write down and revisit—especially when the skies look darkest.
1. The Market Is Positive More Often Than You Think
Over the past 25 years, the U.S. stock market (S&P 500) ended the year in the green 17 out of 25 times. That’s 68% of the time.
Put another way: nearly 7 out of every 10 years delivered a positive return.
So why does it always feel like a crash is looming?
Because the human mind is wired to remember pain more vividly than peace. Crashes, shocks, and losses make noise. Gains? They happen quietly.
This leads to a distorted perception of reality.
Investing is counterintuitive: you often need the courage to stay the course exactly when every instinct tells you to run.
2. Even in Winning Years, There Were Sharp Drops
Here’s the more surprising truth: even in most of those positive years, the market experienced temporary declines of 5–10%, and in some cases even 20% or more.
Yet those dips did not stop the market from finishing the year in profit.
This is a misunderstood concept: volatility isn’t the price of admission—it’s the nature of the ride.
Some see a temporary -10% drop and think, “I need to sell before it gets worse.” Others recognize it as a normal part of the journey—and maybe even an opportunity to invest more.
3. Long-Term Investors Have Been Rewarded—Despite Everything
From 1999 to 2024, the world went through:
- The dot-com bubble,
- The 2008 global financial crisis,
- The 2020 pandemic,
- Not to mention Brexit, wars, European debt crises, and more.
Yet, an investor who put $100,000 into the S&P 500 at the start of that period would now have $666,300—with dividends reinvested.
That’s a total return of +566%, or an annualized return of 7.85%.
A performance that no savings account or government bond could even come close to matching.
But This Is Not a Magic Formula to Get Rich
These numbers are not guarantees.
They do not mean that:
- The next 25 years will necessarily look the same;
- Everyone should put all their savings into the S&P 500;
- It’s easy to stay invested during the worst moments.
The truth is, investing isn’t just math. It’s psychology.
Knowing the market has rewarded patience is helpful—but staying the course when everything feels like it’s falling apart is what really sets successful investors apart.
Final Thought: Three Stats, One Clear Message
The data tells a simple, powerful story: the market rewards patience, consistency, and knowledge.
Investing is not gambling. It’s not about “timing the market.” It’s about embracing time, volatility, and even discomfort.
Those who can do this often look back and realize that the crises which once felt terrifying were merely part of the journey toward a better financial future.
Rational Wealth 