The Biggest Risk to Your Portfolio Isn’t a Market Crash

Every so often I see a chart that really makes me stop and think.

Having sat across from hundreds of business owners, soon to be retirees and seasoned retirees I’ve often wondered if we are our own worst enemy when it comes to investing. There's a famous financial advisor quote that says “ A great financial advisor is the gap between you and stupid”. While made in jest, there is truth to this as most people left to their own simply do not perform well with their money, hard stop.  Study after study shows that self directed investor not only under perform the broad markets, but they underperform their counterparts that work with a great advisor.

The reasons? Well there are many. Think of how easy it is to react to news now versus even 10 years ago. I can move money around within seconds from my phone – this didn’t exist years ago. There was no gap to stop you from being irrational. You’re also being bombarded with news every day, every hour, most of which is no effect on your investments but they sure make it sound like it does! 
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This chart below has tracked the largest 500 companies from 1950 to 2025 showing the drawdowns (red) and where the year ended (green). Study this, memorize it, send it to your best friends and show everyone that the markets are not broken! In fact, they are the most efficient vehicle on this planet to build wealth.
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There will be another drawdown in 2026. Just like there was in every year before it. But downside volatility isn’t the enemy of high returns, it’s the reason they exist. Look at how many more positive years (green) than there is negative (red). If there is one chart every investor needs to see, this is it.
 
Will there be temporary periods of volatility? History shows us this happens every year,  this is not new. What history also shows us is that there are many more positive years than there are negative. To be a successful investor means you must invest through the good times and the bad; there is simply no avoiding this.
 
But the reward is worth it!  Just think about a lifetime of income that your family will never outspend. A legacy that can fund future grandchildren, or great-grandchildren who you may never have the chance to meet. Gifts to those who need it more than yourself. A retirement that allows your family to confidently spend every month, without encroaching on your capital.

Staying ahead means staying invested and holding on even when everyone around you is being irrational and telling you to do the opposite. The rewards are incredible for the small percentage that do!