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Perhaps the Most Important Chart in the Investing World

May 07, 2025

This chart shows the performance of the stock market (bars) and the largest intra-year decline (dots) each year. The average year sees a stock market drop of -13.5%. However, most years still end in positive territory, averaging 9% gains. Volatility is a normal part of investing and investors are often rewarded for staying disciplined through short-term volatility.