Number of times your wealth compounds based on rate and time
Disclaimer: The above example is for illustrative purposes and not indicative of any investment. Data calculated by Nixon Capital.
Nixon Capital Site
The Power of Compounding
Benefit of Long-Term Investing
% of time investors would have lost money for various investment horizons
(Analysis based on inflation-adjusted rolling periods for S&P 500 Index from January 1871-March 2020)
Source: Robert Schiller and Schroeders.
Disclaimer: Past performance is not a guide to future results and may not be repeated. For illustrative purposes only. S&P 500 data prior to Sep. 11, 1989 is back-tested and based on index methodology in effect on the launch date.
Investors Must Embrace Volatility
S&P 500 intra-year declines vs calendar year returns
as of: 12/31/2022
Despite average intra-year drops of -14.3%, annual returns positive in 32 of 43 years.
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management. Note: Returns are based on price index only.
Disclaimer: Past performance is no guarantee of future results. For illustrative purposes only.
Market Timing is a Flawed Strategy
Annualized total returns of S&P 500 (1990 – 2021)
as of: 12/31/2021
*If each of these three investors indexed $1mln to the S&P 500 in 1990, they would be worth the following:
Investor I
$20,451,095
Investor II
$7,080,132
Investor III
$3,514,879
Source: Data provided by Bloomberg through 2019. Updated by Nixon Capital through 2021.
Disclaimer: Past performance is no guarantee of future results. These examples are hypothetical and provided for illustrative purposes only.
“If you don’t like change, then you will like irrelevance even less.”
