Market Drawdowns vs. Total Returns

This table shows the annual performance of the S&P 500 Index from 1950 to 2025 (with 2025 not yet complete).

Key Information:

• DD (Drawdown): Represents the maximum percentage drop the S&P 500 experienced within that specific year.
• TR (Total Return): Shows the overall percentage gain or loss for the S&P 500 by the end of that year.

Key Takeaways:

• The table highlights the volatility of the stock market. You can see years with significant drawdowns alongside years with strong positive returns.
• It visually demonstrates that even in years with substantial intra-year drops, the market can still end with positive gains (and vice versa).
• While the market experiences periodic declines, it consistently delivers positive annual returns over time, with even greater reliability over longer periods.

Taking the historical perspective on market fluctuations, we see that temporary losses are a normal part of investing—and, more importantly, so is the long-term potential for growth.

The S&P 500 is a market-cap weighted index composed of the common stocks of 500 largest, publicly traded companies in leading industries of the U.S. economy. Forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.