Greg Glidden
Chief Equity Strategist
When it comes to investing, stocks are recognized as the great equalizer. While other asset classes operate to reverse the eroding effects of inflation, stocks serve to fill the tank for so many positive outcomes. This extra reward naturally comes with the risk of ownership. Unlike owners of single businesses, stock investors have the advantage of realizing meaningful risk control through portfolio diversification. The remaining obstacle is the volatility of pricing. For this, we turn to historical data.
The record over the past 60-plus years is pretty impressive. As the chart below illustrates from left to right, the investor’s best friend is their time horizon. Even during the shorter time periods of 1- or 5-year increments, the prevalence for achieving positive absolute and above inflation returns has been highly significant. This should serve as a reminder for investors to develop a plan and stay the course.
Period: 1/1/1950 – 3/31/2019
Ziegler Capital Management, LLC is a wholly owned subsidiary and affiliated SEC Registered Investment Adviser of Stifel Financial Corp. This material is based upon information that we consider reliable, but we do not represent that it is accurate or complete and it should not be relied upon as such. pinions expressed are our current opinions as of the date appearing on this material only. No part of this material may be duplicated or redistributed without Ziegler Capital Management’s prior written consent. All investments involve risk, including the possible loss of principal, and there is no guarantee that investment objectives will be met. Equity securities are subject generally to market, market sector, market liquidity, issuer, and investment style risks, among other factors to varying degrees. Equity securities may rise and decline in value due to both real and perceived market and economic factors as well as general industry conditions. Indices are unmanaged, do not reflect fees and expenses, and are not available as direct investments.