Whether the headline comes from a newspaper or a push notification, there will always be negative news that will make investors wary.
The table below shows standout news events over the past half century. Since we’re in 2024, we highlighted events from each year ending in four. Disciplined investors who tuned out the noise and stayed invested in stocks were rewarded in the long run.
Staying Invested Despite Negative News
Year | Reasons Not to Invest | Stock Market Return for Calendar Year | Growth of $10,000 Investment From Date in Column 1* to 12/31/22 |
1974 | President Nixon resigns |
-26.47% |
$2,012,758 |
Oil crisis |
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Global recession deepens |
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1984 | 78 US banks fail |
6.27% |
$730,833 |
Indira Gandhi assassinated |
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Widespread famine in Ethiopia |
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1994 | Rwanda genocide |
1.32% | $181,763 |
US rate hikes sink the bond market |
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Aldrich Ames convicted of spying |
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2004 | 290,000 people killed in tsunami |
10.88% |
$63,637 |
Abu Ghraib prisoner abuse |
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Civil war in Rwanda |
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2014 | Ebola outbreak |
13.69% | $31,149 |
Deep racial divisions |
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Rise of ISIS |
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2024 | Contentious elections | ??? | ??? |
Israel-Hamas War |
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Russia-Ukraine War |
Past performance does not guarantee future results. *Assumes an initial investment of $10,000 in stocks beginning on January 1 of the date in column 1 through December 31, 2023, reinvestment of dividends and capital gains, and no taxes or transaction costs. Stocks are represented by the S&P 500 Index, which is a market capitalization-weighted price index composed of 500 widely held common stocks. Indices are unmanaged and not available for direct investment. For illustrative purposes only. Data Sources: Morningstar and Hartford Funds, 1/24.
What will 2024 bring? Even if it’s a down year for stocks like 2022 when the S&P 500 Index lost more than 18%, history suggests the market is likely to be resilient and reward investors over time.
Your financial professional can help you become a more confident and disciplined investor.
This material is provided for educational purposes only.
Investing involves risk, including the possible loss of principal. Individual investor’s circumstances may vary. Before investing, consider your personal goals, risk tolerance, and time horizon. While diversification does not ensure a profit or protect against a loss in a declining market, it may be prudent to diversify among equity and fixed-income investments.