*Assumes an initial investment of $10,000 in stocks beginning on January 1 of the date in column 1 through December 31, 2020. 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. Past performance does not guarantee future results. The index is unmanaged and not available for direct investment. For illustrative purposes only. Sources: Morningstar and Hartford Funds, 2/21.
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 2021 bring? Even if it’s a down year for stocks like 1981 or 2001, history suggests the market is likely to be resilient and reward investors over time.