After a long period of relative calm, stock markets have suddenly become more volatile due to worries surrounding China's economy. When markets are highly volatile, it's not always easy to remain focused on a long-term investment strategy. Still, it's important to keep a healthy perspective and recognize how similar events have played out in the past.
Consider the Financial Crisis of '08 and how the markets rebounded in the years that followed. Further back in time, investors faced the Dot-Com crash of the early '00s, the Asian currency crisis in the late '90s, skyrocketing inflation in the early '80s and the Arab Oil Embargo in the early '70s. For each of these time periods, investors were rewarded for persevering through their unpredictable markets.
The attached chart illustrates the growth of world stocks from 1970 through 2014, with data points for each major concern along the way. We believe this displays a strong reason to maintain a steady investment philosophy, despite the worries of today.