Stock market reward in two pictures
When I wrote about the risks of investing in stocks in two pictures, a reader (thanks Sampson) pointed out that I should also write about the other side of the coin — stocks can also rise sharply in a very short time period. That has been the case with the stock market in the past 90 days. Since hitting bottom on March 9, the TSX Composite is up about 40%.
![[The reward of investing through market turmoil: TSX Composite in 2009]](http://www.canadiancapitalist.com/images/2009/tsx_2009_upturn.jpg)
The S&P 500 is also up more than 40% since hitting bottom in early March.
![[The reward of investing through market turmoil: S&P 500 in 2009]](http://www.canadiancapitalist.com/images/2009/s_p_500_2009_upturn.jpg)
These pictures show why investors should continue to put money to work in periods of market stress instead of suffering from a deer-in-the-headlights syndrome. It is not pleasant to lose a chunk of capital as soon as it is invested but when markets do bounce back, investors stand to reap the rewards of enduring the pain of a bear market.
Related Reading:
- Stock Market Risk in two pictures
- Is there anything better?
- Poor 10-year Stock Returns is not Unprecedented
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