Investing Regrets

There has been a lot of research about people near the end of their lives. Most don’t regret what they did but rather the things they didn’t do, like wishing they had stayed in touch with friends, spent more time with loved ones, taken that trip, or lived more in the present. 

Similar research has been completed for retirees. Their top regrets are not starting earlier and saving enough, wishing they had saved more consistently, and being more knowledgeable about saving and investing. 

Hopefully, I’m not near the end of my life, and even though I’m in the investment business and should know more than the average regarding investing, I, too, have a regret. Selling! But that was long ago, and I learned from my own experience, the mistake of selling and how it can hurt my future self.  As I write this blog on March 10, 2025, the S&P 500 is down 2.5% and nearly 10% from its all-time high. I receive calls from nervous investors as they listen to the 24-hour, 7-day-a-week news cycles vying for listeners. Or perhaps they are checking their accounts daily and fixate on the all-time high, and anything less is deemed a loss. For most, it’s not the last day of their lives, and they should be investing for the rest of their life or the next generation if they’ve been good savers.  I’ve heard all the reasons for selling. I’m retiring next year; I don’t have time to wait for the comeback; I can’t lose any money; this time, it’s different; I don’t trust this guy at the Whitehouse or the government, and so on and on.     

If investors fact-checked the history of the markets, they would likely understand why I have regretted selling. Today, I would only think of making significant adjustments in my portfolio if my goals and/or time frame change, not because of what I hear in the news cycle or see in my statements.

The Facts: 

1. To date, every downturn has been followed by an upturn.
2. An economic recovery has followed every recession.
3. Volatility is normal. The S&P 500 has averaged a 14% annual decline since 1980 while returning over 10% annually if you stay invested. 
4. Since 1942, bull markets have lasted, on average, 4.3 years, while bear markets have only lasted 11.1 months.
5. During the last 99 years, the market has been up 73 times, with an average up year of 21.5%. It’s been down 26 times, with a negative 13.4% return. 
6. The last time the S&P 500 was down 10% or more was October 2023 (not even two years ago), but it ended up over 20% in both 2023 and 2024.
7. Since the market peak in 2007 and after the financial crisis and COVID-19, Stocks have averaged 10.3%. During this same period, other popular investments have performed as follows: Gold 7.6%, 10-year Treasury + 2.5%, and Home Prices + 4%.      
8. Every prior downturn is now viewed as a buying opportunity.
9. This downturn will likely be viewed similarly when looking back.     

So, investing regrets might be a little different than life regrets. When it comes to investing, it’s the things you don’t do, like selling, that you’ll likely appreciate the most when you’re nearing the end of your life. With a long-term history of the markets as a guide, it’s hard for me to be pessimistic in the short run. Savvy investors will be opportunists and use any volatility to create wealth by accumulating more shares at lower prices. Sellers will likely be victims of the news, which hurts their probability of success over their lifetime. That’s what history shows and how I see it.

I get through the challenging periods by staying calm, not focusing on my account values, focusing on the future, and remembering the facts I stated above. 

My name is Kerry Bubb, President of KWB Wealth. My experience started in June 1987, just six months before the 1987 Crash. Oh, you probably don’t even remember that crash. On Oct 30, 1987, the DJIA closed at 1993.57. The all-time high through March 12, 2023, of the DJIA is 45,073.63. What a run!

~ Kerry Bubb

Sources: First Trust, Bloomberg Data (4/29/1942-12/31/2024), Federal Housing and Finance Agency (FHFA), Bureau of Labor Statistics, Morningstar, Calamos Investments, and Guggenheim Investments. All historical data are accurate as of the date referenced but may not be indicative of future performance.

The views expressed in this blog are those of the author and do not constitute specific investment advice. Any forward-looking statements or assumptions made are based on current market conditions and may not reflect future performance. Investors should consult with their financial advisor to evaluate their unique financial circumstances before making any investment decisions.