Last week’s market sell-off was uncomfortable, but intra-year declines have historically been routine. The S&P 500 remains up 8.4% in 2026 (this number will be updated on Tuesday).
- Volatility is normal. A 5%+ intra-year decline occurred in 44 of 46 years between 1980 and 2025. A 10%+ decline occurred in 25 of 46. The average intra-year decline was -14%.
- The market has gone up more often than down over these decades. Since 1980, the market finished higher in 38 of 46 years (83%). The average gain in up years was about +19%, versus about -14% in down years. Over the full period, the S&P 500 was up an annualized 12.2% per year.
- Stay the course once you have a prudent long-term strategy. In 17 of the 25 years with a 10%+ decline, the year still ended positive. Staying invested through market gyrations has historically been one of the most reliable ways to grow wealth.
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