What History Shows Us About Market Downturns

Everything isn't always peachy keen in the stock market. History has shown us that volatility and market downturns are inevitable. However, as an investor, this doesn't mean panicking and losing track of your long-term goals. If anything, it can be a chance to get closer to your financial goals -- especially if time is on your side.

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From 2000 to 2020, the stock market saw three major crashes that sent investors into a panic. In March of 2000, the tech (dot-com) bubble burst. On March 10, the Nasdaq Composite index peaked, breaking 5,000 for the first time ever at that time -- up from around 1,000 in 1995 and more than double from 1999. From there, it went all downhill, with the NASDAQ losing close to $1 trillion in value in less than a month. As of May 20, 2022, it's above 11,000, even after dropping from 16,000 in November 2021.

Source Fool.com