06/18/2026
Slumps are part of the game. Every hitter has them. The ones who last are not the ones who avoid the slump. They are the ones who do not rewrite their whole approach after one bad stretch.
Investing works the same way. Looking at the US market from 1926 through 2025, there were 75 positive years and 25 negative ones, averaging about 10.2% a year. Historically, most down years were followed by up years. The most recent example was a loss in 2022 followed by a strong 2023.
As the old saying goes, history does not always repeat, but it often rhymes. That is not a promise about any single year. But when I am helping a young player stay committed through the noise, it is a useful reminder of why we do not abandon a plan after one rough stretch.
That is the lesson from the field and from the market. Trust the process, and do not let one rough season pull you off your plan.
Source: Dimensional Fund Advisors. CRSP 1-10 Index Returns by Year, 1926 to 2025.
Past performance is no guarantee of future results. Investing risks include loss of principal and fluctuating value. There is no guarantee an investment strategy will be successful. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio.
In USD. Return in 1970 was 0.002%. CRSP data provided by the Center for Research in Security Prices, University of Chicago. The CRSP 1-10 Index measures the performance of the total US stock market, which it defines as the aggregate capitalization of all US securities listed on the NYSE, NYSE MKT (formerly AMEX), and Nasdaq Global Market.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Investment products: Not FDIC Insured, Not Bank Guaranteed, May Lose Value