When the curtain finally closes on 2020, it’ll go down as one of the most volatile years on record for the stock market. We watched the CBOE Volatility Index hit an all-time high and witnessed the quickest bear market decline of at least 30% in the S&P 500. It took less than five weeks for the index to lose a third of its value.
For investors with a long-term mindset, these declines have been blessings in disguise. Since bull market rallies eventually erase all stock market corrections, long-term investors can use sizable declines in equities as opportunities to put their money to work.