Stay invested in volatile times

A volatile market can be difficult to endure, but history shows it’s important for investors to persevere. Large declines may make it tempting to pull out of the stock market, but by selling when the market is down, investors may miss out on a potential market rebound and opportunity for gains.

In the chart below, the blue bars represent how much an investor could have received if they were invested for the whole year. The orange bars represent the largest declines that occurred each year. There are no guarantees in investing, but looking back over the past 30 years, we can see two things:

  • Even the most successful years saw periods when the market was down. For example, in 2013 the market finished up 21%, but this included a period where it dropped 5%.
  • The declines look bad, and would have felt even worse at the time, but more often than not the market recovered quickly, in most cases before the end of each year.

Please remember, past performance is no guarantee of future performance. The value of investments can go down as well as up and you may get back less than you originally invested.

Annual total return vs. Largest Declines1
31/12/1985 to 31/12/2016

Annual total return vs. Largest Declines

These charts are for illustrative purposes only and do not reflect the performance of any Franklin Templeton fund. Past performance does not guarantee future results.

Stay the course with Franklin Templeton

It can be difficult to take a long-term perspective during volatile markets with daily injections of bad news. If you develop the ability to focus on the long-term, you'll have started to master the primary approach to living with volatility's downside.

By speaking to a financial adviser, you can discuss your investment options and find a solution that's right for you.

Franklin Templeton Investments has a range of funds which take a long term view, leveraging disciplined, time-tested strategies and assessing risk as rigorously as they seek reward.

View our Investment Strategies

More on Investing

Why volatility is not all bad

Learn more

Watching from the sidelines may cost you

Learn more

When is the best time to invest?

Learn more