Should You Stay Invested During a Market Downturn?
This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
Past performance is no guarantee of future results.
Investing involves risks, including the loss of principal invested.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
The S&P 500® is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by Charles Schwab & Co., Inc. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). Charles Schwab & Co., Inc. is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s), nor do they have any liability for any errors, omissions, or interruptions of the S&P 500.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.
1The market is represented by daily price returns of the S&P 500® Index. Bear markets are defined as periods with cumulative declines of at least 20% from the previous peak close. Its duration is measured as the number of days from the previous peak close to the lowest close reached after it has fallen at least 20% and includes weekends and holidays. Periods between bear markets are designated as bull markets. Indexes are unmanaged, do not incur fees or expenses, and cannot be invested indirectly. For additional information, please see Schwab.com/IndexDefinitions.
2Stocks are represented by the S&P 500® TR Index and bonds by the Ibbotson Intermediate-Term Government Bond TR Index. The 50/50 portfolio is comprised of 50% allocation into bonds and 50% allocation into stocks. This portfolio is rebalanced annually. Indexes are unmanaged, do not incur fees or expenses, and cannot be invested indirectly. For additional information, please see Schwab.com/IndexDefinitions.1022-2XHR