How $50,000 Turned Into $1.18 Million Despite Five Market Crashes
A hypothetical investor, Joe, demonstrates how long-term patience can pay off in the stock market today. Over 60 years, he invested $10,000 at five major market peaks. Despite early losses, his total $50,000 stake grew to $1.18 million by today.
Joe’s first investment came in October 1965. Over nearly 16 years, it returned 31%, but inflation eroded much of that gain. His next move, in October 1987, saw the value drop sharply after Black Monday, leaving him with just $7,000.
In March 2000, another $10,000 investment lost nearly half its worth within 18 months as the dot-com bubble burst. A later bet in October 2007 suffered even more—falling over 50% in two years during the financial crisis. His most recent investment, made in February 2020, initially plunged 26% as COVID-19 shook global markets. Yet, despite these steep declines, holding steady allowed his combined investments to grow significantly over time.
The example reinforces a well-known principle: staying invested over decades can outweigh short-term losses. Joe’s total returns, despite multiple crashes, show how persistence in the market can lead to substantial growth. His portfolio’s final value stands at more than 23 times his original outlay.
