Patience Pays in the Market

Significant investment gains often arise from the ability to remain invested and capitalize on market recoveries after substantial drops, such as a 50% decline. Regular automated contributions during downturns can amplify returns, as investments bought at lower prices eventually rebound, potentially exceeding prior highs. A long investment horizon of 20 to 30 years is crucial, especially given historical market fluctuations, such as Japan's protracted bear market. Understanding the average returns of various asset classes is essential, as stocks typically yield around 10% compared to government bonds' 5 to 6%, making equities a more favorable choice for younger investors seeking long-term growth.