The first decade of the new millennium was a wild and unpleasant ride for long-term investors. From 2000
to 2009, equity markets around the globe became increasingly volatile. The early part of the decade had calendar year losses in the S&P 500 of 9%, 12%, and 22%, followed by five years of solid gains with annual returns ranging from 5% to 29%. These gains were followed by a steep loss of 37% in 2008 and a large rebound in 2009 of more than 26%. These severe whipsaws have tested even the most resilient investors to stay true to a disciplined investment approach and remain diversified.
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