LESSONS FROM THE PAST DECADE
John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial
As we begin 2020, we’ve had a chance to reflect on what was an unprecedented decade for financial markets. The 2010s taught long-term investors two important lessons: to ignore short-term market noise and to be prepared for volatility. It was a curious time, but many investors who followed the basic principles of long-term investing and diversification ultimately triumphed.
LESSON #1: BE PATIENT WITH STOCKS
The S&P 500 Index embarked on a historically long rally last decade. At the end of 2009, the benchmark was nine months into what would become the longest bull market on record (129 months and counting). Since then, the S&P 500’s price has almost...