In Shaky Times, Investors Should Hold Their Nerve. By David Booth.

When markets feel as shaky as they do now in the US, it is normal to ask: Is this time different?

After all, the S&P 500 Index is down some 4% already this year and there is considerable economic uncertainty. But anxious investors today should consider where the market was five years ago, and how well those who tuned out the noise performed.

Then, the COVID-19 pandemic had spread rapidly, and the US stock market dropped 34% in just 23 days—faster than ever before.1 The VIX index, a measure of investor expectations of volatility often called Wall Street’s “fear gauge,” hit a record high.

Yet within a year, the market had not only recovered, but also risen 78% from its lowest point. People who sold during the panic missed one of the strongest recoveries ever. Each uncertain period brings its own unique challenges, making it more difficult for investors to keep the faith.