Were your guesses close?

Over the last 96 years

Your Guess

Actual*

Probability*

BIG LOSS

12% or more


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years
7 years 7.3%

Small Loss

0% to -11.9%


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years
18 years 18.8%

Small Gain

0.1% to 11.9%


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years
20 years 20.8%

BIG GAIN

12% or more


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years
51 years 53.1%

*Based on 2021 Ibbotson Associates SBBI data.

 

Do your guesses match the reality of the data? If not, seeing the differences quantified may help you realize how misconceptions about stock market realities can affect your investment decision-making.

If you allow your emotions to guide your investment strategy, just one behavioral failure could significantly alter your path to a secure retirement.

Hopefully, taking this quiz will empower you with greater self-awareness and help you persevere and make more informed decisions when markets get choppy.

Keep scrolling for an interesting historical snapshot of market returns since 1926.

A snapshot of market growth and loss from 1926 to 2021

As you can see, the market tends to fluctuate, but historically, there have been more years of growth than years of loss.

 


Ibbotson US Large Cap Stock Index1

Ibbotson SBBI US Large Stock Index as of 12/31/2021. Chart is for illustrative purposes only and is not representative of the performance of any particular portfolio, security, or strategy. An investment cannot be made directly in an index. Past performance is no guarantee of future results.


 

Emotions often cloud investor judgment, so being armed with facts means having more confidence in your choices. In the end, this can have a positive effect on your investment portfolio and your future.

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1Source: Ibbotson Associates SBBI Data, Ibbotson SBBI US Large Stock Index, ©2022 Morningstar, Inc. All rights reserved. Used with permission. Ibbotson Associates, as of January 2022.
Large company stock performance is derived from the Ibbotson SBBI US Large Stock TR and includes the reinvestment of dividends with no fees assessed. Indicates year-end results.

Jackson, its distributors, and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change. Tax results may depend on each taxpayer’s individual set of facts and circumstances. You should rely on your own independent advisors as to any tax, accounting, or legal statements made herein.

Investing involves risk, including loss of principal.

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