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Whether the headline comes from a newspaper or a push notification, there will always be negative news that will make investors wary.

The table below shows standout news events over the past half century. Since we’re in 2022, we highlighted events from each year ending in two along with the ever-tumultuous 2020. Disciplined investors who tuned out the noise and stayed invested in stocks were rewarded in the long term.

Staying Invested Despite Negative News

Year Reasons Not to Invest Stock Market Returns Growth of $10,000 Investment From Date in Column 1*
1972 Watergate scandal breaks
19.00% $1,975,778
Vietnam War continues
Munich Olympic terror
1982 High inflation
21.55% $1,052,703
Severe recession
Middle East turmoil
1992 LA riots
7.62% $208,215
Hurricane Andrew
Chicago flood
2002 US invades Afghanistan
-22.10% $61,685
Iraq War resolution
Dot.com bubble fallout
2012 US Consulate in Benghazi attacked
16.00% $46,257
Trayvon Martin killed
Sandy Hook shooting
2020 Worst pandemic in 100 years
18.40% $15,239
Presidential impeachment
Double-digit unemployment
2022 Russia-Ukraine War ??? ???
High inflation
High oil prices

Past performance does not guarantee future results.  * Assumes an initial investment of $10,000 in stocks beginning on January 1 of the date in column 1 through December 31, 2021. Assumes reinvestment of dividends and capital gains and no taxes or transaction costs. Stocks are represented by the S&P 500 Index, which is a market capitalization-weighted price index composed of 500 widely held common stocks. Indices are unmanaged and not available for direct investment. For illustrative purposes only. Data Sources: Morningstar and Hartford Funds, 1/22. 

 

Perhaps nothing illustrates the resilience of US financial markets more than the confluence of historic events in 2020. And while stocks initially sold off sharply due to COVID-19, they recovered by the end of the year.

What will 2022 bring? Even if it’s a down year for stocks like 2002, history suggests the market is likely to be resilient and reward investors over time.

Your financial professional can help you create a plan so you can be a confident and disciplined investor.

 

Investing involves risk, including the possible loss of principal. Individual investor’s circumstances may vary. Before investing, consider your personal goals, risk tolerance, and time horizon. While diversification does not ensure a profit or protect against a loss in a declining market, it may be prudent to diversify among equity and fixed-income investments.

This material is provided for educational purposes only.

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The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, or ETF summary prospectus and/or prospectus, which can be obtained from a financial professional and should be read carefully before investing.

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