economy

March 5, 2026

The S&P 500 shrugs off 1% and 2% daily drops all the time. Investors can, too, financial advisors say

Investors should ignore even big market drops: The S&P 500 fell by 1% or more on 1,001 days since 1996, an analysis by Morningstar Direct found.

The S&P 500 shrugs off 1% and 2% daily drops all the time. Investors can, too, financial advisors say

TL;DR

  • The S&P 500 experienced drops of 1% or more on 1,001 days since 1996, and drops of 2% or more on 313 days.
  • A $10,000 investment in the S&P 500 in 1996 would be worth approximately $191,744 today.
  • Market volatility and drops are common features of the stock market, often occurring during geopolitical events.
  • Financial advisors recommend maintaining a clear head, sticking to a well-thought-out plan, and diversification.
  • Past market recoveries from significant drops, such as during the COVID-19 pandemic and after tariff announcements, demonstrate resilience.
  • Investors may benefit from rebalancing their portfolios during significant market declines by buying stocks when prices are lower.

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