Markets & Economy

Equity Investors Need to Accept Volatility

Equity investors need to accept volatility — an average of three 5% pullbacks per year, one 10% correction per year and one bear market decline of 15-30% every three-to-five years has been the average. Yet in 26 of the past 32 years from 1980 through 2012, stocks produced positive returns despite intra-year drops averaging 14.5%. With this in mind, Even with the volatility stocks offer the best long-term prospects.